Here's how to get started: find a bargain "fixer-upper" owned by a worried seller. The hardest house for a homeowner to sell is a "doghouse," "dump," or "fixer-upper." These run-down houses turn off most home buyers, who don't have the money to cover the down payment, plus closing costs, new furniture, carpeting, appliances, roof repairs, and other deferred maintenance required to bring the home back into top condition.

Over the last 45 days, the Salton Sea area of Southern California has suddenly experienced a boom of new growth, with some fifteen small-scale builders now building homes in an area that was once considered depressed. During that period, 75 single family residential lots were sold by Diamond Pacific Realty in the Salton City area, making it one of the hottest areas in Southern California as builders latch on to an opportunity to "buy low and build high."

Even though home sales have fallen to their lowest levels in five years in February, the average price of a home in Southern California rose to the highest level in history. For example, sales of homes in Los Angeles were 9.2 percent in February, while the median home price jumped some 15.6 percent to $490,000. In February, the median price paid for a home in Los Angeles, Riverside, San Diego, Ventura, San Bernardino, and Orange counties was $480,000, which represents a 2.3 percent increase from January and a 12.9 percent from the same period last year. It's also the highest median price in Southern California history, even though far fewer homes actually changed hands.