I agree with Nor-LA-SD-guy to a large degree. We technically live in Murrieta, but about a block up from Harveston (which is Temecula), so we’ve always considered ourselves “Temecula”. I would say that the folks in French Valley are quite a hike from the central area of Temecula (Promenade/Mall/Restaurants), and along an unfriendly road (Winchester) if you’re looking to bike or walk. Our community is called Vintage Reserve, and I like that we can walk to the Harveston lake and parks, and can easily walk or ride bikes to the Promenade area. That and we are freeway-close, which if anybody tells you than an extra mile/or half-mile east doesn’t matter – they haven’t tried to get in or out of the city during “rush hour”.

No clue if we’re close to the bottom – we bought at about 100$/sq foot in 2003, and are seeing most REO’s down at about that level or a hair lower.

I wouldn’t try to invest in a rental here right now, just because of the glut of housing available. I’m not an expert and don’t claim to be, but I can’t see that with this quantity of housing you’re going to get a great ROI with all the folks that will be trying the same thing (in our case, once SD comes down in the next 2-3 years, we’ll probably buy an additional house there and rent the one here for a few years… can’t imagine we’re the only ones with that plan).