We bought a house in AZ last winter that was selling cheaper. We are renting it out now and making a little money on it after all the expenses and it has gone up in value and we think it will keep going up for awhile so we are not trying to sell it now. I have learned that I do not want to own rental property even if there is a decent profit to be made. We have very good renters in there and it still takes a lot more time then I was planing on. It seems like there are always little problems that need attention. If you can find some lots that were set up for developement and didn't get developed I think that might be a better way to invest. Lots in our area in AZ went to about 1/3 of the price they where selling forbefore the downturn  and I don't think there would be many problems with them. There is no fear about them being stolen or burning down or water leaks or water softeners or landscaping to keep up.