[tubebender]

I'd bail out of real estate soon.

Capital gains taxes in Cal (Fed & Ca) run 40% plus 6 % commission to realator and you will probably have to carry a second behind the bank. requires some thought. Remember this property is probably returning a good rent.

[steveegg]

Rentals are a special case (they're like stocks that pay dividends; hopefully they don't turn into Ford), but the speculative market doesn't look good.

[dalereed]

"Capital gains taxes in Cal (Fed & Ca) run 40%"

You'rre forgeting about the new rules!

You get a 600,000 exclusion (I believe it has been raised now) if it has been your primary residence for 2 out of the last 5 years and it's not a one time thing anymore, you can do it every 2 years!

[blam]

"Remember this property is probably returning a good rent."

My fear is that there will be no-one who can afford the rent.(?)