My son (frankly, against my advice)just bought two houses in LA county. He financed both...that makes a total of four he has financed in that area. Two in Glendora and two in Sierra Madre.
If I owed money on anything I own it would scare the crap out of me.
The conditions today make me get everything into hard goods and out of cash(in the bank) and only hold enough green cash to hold me for 6 months.
If we go into full blown depression I will still have an income and the only expenses being property taxes and maintainance, rents will still provide a net income.