If houses are sitting vacant for long periods between tenants, and prices are declining, I would encourage you to look at other markets.The final thing to remember:  Just because there's always a deal somewhere doesn't mean that there's always a deal everywhere.  

With the $53K downpayment we were willing to drop, a 30 year fixed mortgage, and typical rents in the area, the property would generate a positive cashflow of about $500 a month (about 11% ROI - unheard of for San Diego)!

@Linda Weygant Sales tax is collected on the end user.  

Actually, I think you hit it right on the head with this one, we are not Detroit, we are CLE "Cleveland" Our housing stock and rental market is lush with fruitful inventory, we have been a workhorse during tough times and a stallion during good times, I recommend checking out some of my other posts about CLE, and I encourage you to come visit us, I assure you that you will develop a whole new perception of our great city and everything it has to offer.

utm_source=search&utm_medium=internal&utm_campaign=booksSimply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

People that are tearing down small houses and building large houses aren't in it as a long-term investment that generates monthly income. 

I think the umbrella is a relative bargain (and as you note probably lower risk for insurer as the underlying coverage may handle many claims) for the price (I use  RLI, and maybe your solution is as simple as a lower cost provider)...In my very short time seeing inside of insurance defense, I would see the guys that worked for the major insurers (who fought claims on a daily basis) up their own policies, so that was enough for me..  

As many people will, I'd encourage you to listen to the podcasts whenever you can make time, read the ultimate beginners guide, and add some keywords to your forum search - that's how I found this post.Most things can be applied to the Canadian market from the US(From what I've found, except of course the financing) Almost everyone on the forums will know more than me here, but as a recent grad I think it's a great idea to start thinking about investing while you're in school.

utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

utm_source=search&utm_medium=internal&utm_campaign=booksSimply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.