I agree totally with author – real estate is very localized and people will miss out if they take a pure appreciation approach to income  producing property. Please read

http://www.hulu.com/watch/173796/nbc-today-show-buy-a-car-or-a-condo-in-miami

Some 198 of the 384 markets tracked by PMI Mortgage Insurance Co. in the first quarter of this year continue to face significant risk of further price declines, the company reported Thursday.Among the 50 most populous metros, the risk of further declines was 70 percent. These areas typically also were faced with higher unemployment and [...]