Someone asked me this great question and last fall as I was blogging I answered it. Here is an excerpt from that blog:

Autumn 2007 in Central Oregon
Welcome to my blog, a commentary on life and real estate in our beautiful Central Oregon paradise. Today as I walked along the sparkling Deschutes River near downtown with temperatures in the 60s, a clear blue sky, leaves of crimson and gold and the smell of fall in the air, I was truly thankful I live here in Bend. What a fabulous time to buy real estate in this temporary dip in our market!

Some experts believe a bottom in our market will be realized when investment property starts to break even because the investors who are currently watching on the sidelines will return and reheat the market. From the prices I am starting to see, we are nearly there. For instance, at a 6.75% interest rate with 10 percent down payment, a typical monthly payment on a $250,000 property is $1,850 principal, interest, taxes and insurance. That may be a stretch for a single-family home as a rental, but it is close to break-even for a duplex. (I love duplexes, by the way. My favorite investment. Two income streams on one piece of property financed at the same rates as single-family residences. Sweet) With this scenario, a $300,000 duplex that rents for $1,900 comes close to breaking even if the monthly payment is $2,200 a month, right? Not bad right out of the starting gate. And with our popular market in Bend, that duplex will appreciate, and rents are going up.