Speaking of the Phoenix RE market, I ran into a bunch of townhouses 1000 sq ft 3/2 selling for $30k that rent for atleast $800 a month. Assoc fees and taxes are $200. So figure $600 net. Thats still a 24% cash on cash return. Funny thing is all these townhouses are investor owned mainly out of state especially CA. They bought them for $100k-$130k back in 2005-2006.

A lot of stuff here in Phoenix is selling for below replacement cost. I was speaking to a friend in the construction business and he tells me that the cheapest homes ( think KB homes) cost $80/sq ft to build. So if you can purchase a 1000 sq ft. property for under $80k , you are mostly likely purchasing it for under replacement cost. You are essentially getting the land for free.

RE: VEGAS - Anyone looked at condos on the strip ? There is one condo project, the Platinum which is right off the Strip and I have seen units selling for $200k that sold for $450k + back in early 2007. Condos around the strip have easily lost 50-70% of their value in the last 2 years.