I looked at a studio condo a few weeks ago that the bank had dropped from 40K to 25K in the last two months, once this week. It's about 400 squre feet, has a kitchen and a shower, and is in a nice part of town that typically has high real estate prices. The same condo sold for 55K in 2005. I could buy this condo with cash outright, and being a single guy it ain't terrible. It would be nice to not have a mortgage or rent payment. Alternatively, I could buy a nice two bedroom condo for 80K with just under 1,000 square feet. This one is remodeled and doens't need any real work. Just down the street from option 1 above. I would have to take out a loan for this one. Which would you pick? The goal is to stop throwing money away on rent and start building wealth.