I think my market has stabilized, but values haven’t begun to increase yet.

If rents increase and expenses decrease, you could have an improvement in cash flow.

This will just be one more nail in the coffin of banks and will increase the costs of lending.

3) in terms of risk/reward, how much do you think I could get for the NNN lease income on such a property - would my example of increasing the on-site manager's income from $60K to $110K be sufficient reward for the additional risk they take on with regard to vacancies and maintenance expenses?

Equity either acquired through TIME or CASH investment.Leverage will no doubt increase the potential of future returns.

If you have enough properties (or a large enough single property) to make good use of employees, I feel it is the smartest way to operate...as long as you A) LIMIT the types of work (to minimize injury risk...a worker's comp experience mod increase can put you out of business); B) pay what is necessary to attract a WELL qualified employee (NOT your typical "handyman"); C) are an efficient project manager, or are willing to delegate that task to the employee...and generally support his decisions/timelines.If you try to micromanage...you will have turnover, which will be more costly than hiring a contractor.

You should also ask your wife's employer if they will add a HDHP as some may add that with increasing acceptance of the HSA.

That afternoon a different client (early 70s) was very concerned that he didn't have enough money to live on and that he might need to increase his withdrawals from his investment portfolio.

Actually when they slashed rates, I was able to refinance most and actually get more cashflow, and now there is an increase in the number of people needing to rent, and not as many available rental units, so I am able to increase rents as well.Life is good!

`(p) Enhancement of FHA Capacity- Under the direction of the Board, the Secretary shall take such actions as may be necessary to--`(1) contract for the establishment of underwriting criteria, automated underwriting systems, pricing standards, and other factors relating to eligibility for mortgages insured under this section;`(2) contract for independent quality reviews of underwriting, including appraisal reviews and fraud detection, of mortgages insured under this section or pools of such mortgages; and`(3) increase personnel of the Department as necessary to process or monitor the processing of mortgages insured under this section.