Sorry the blog has been slow for several weeks now, but it’s been about 6 weeks since the tax credit expired and about 6 weeks since we’ve spent any time thinking about buying and rehabbing properties. But, now that things have settled down with all the tax credit buying and selling, I think we’re ready to get back to work.
I haven’t really spent much time looking at the MLS, so I have no idea what kinds of deals are out there, and whether prices have increased, decreased or stayed the same since we stopped buying. So, the first order of business is to start scouring listings to find out where the market has gone and start evaluating deals based on current buying and selling trends.
We also need to decide if we’re going to focus our time on flipping or finding some rental properties that we can hold long-term. This will be greatly based on the kinds of deals out there. If we can find some great opportunities on properties that we wouldn’t mind holding long-term, we’ll definitely start acquiring rental properties.
I’ll have more to say in a couple days once we get back down to business…
Cool! Glad you guys are jumping back in. We’ve seen ATL stats showing prices have slipped about 3% Q12010 but not sure about your specific areas. Here in TX the tax credit didnt seem to affect our local market too bad as far as pulling future demand forward, pendings in my farm are up since it’s expiration. We watch market stats weekly really close. Prices were flat in May here and current inventory levels are at 8 months. Good luck this summer, it’s now the “new normal” market w/o government intervention so I am excited to see how things shake out.. Alot of talk about a double dip recession so I’d definately bet on more price slippage nationally.
Interesting data. I’m sitting in NW Florida with an oil slick two miles wide and forty miles long just offshore. No one has any idea of the extent of how this oil is going to impact real property prices. Our economy is driven, in large part, on tourism.
Luckily, we only have one property undergoing a rehab.
Mark
Hi J Scott,
Congratulations on all of your successes thus far in real estate. Looks like you have really found success in your process of flipping. I am actually working to build my own business the other way around. I currently have several rental homes but am now turning to flip out of necessity in order to keep cash flowing. Do you plan on investing your own cash into your rental properties? Or perhaps to try and obtain bank financing (not an easy thing in today’s market) or private funding? Good luck on your future investments!
David –
Once we start holding rentals, we will be working with a local bank that we have a relationship with to do the mid-term financing. They will provide interest-only loans for 36 months, at which time we’ll have to figure out a longer-term financing solution, pay them off or sell them.
For what it is worth in my farm area I am starting to see more Fixer type inventory hit the market with price points at least 10% below Pre Tax rebate experation. I think a double dip in real estate prices is a done deal!!! The only question is how many negative numbers before the government has enough and does an 8K credit for all buyers (including investors). We need to chew through a ton of housing and the only way to do that is to get investors to step in. The other option is to make it easier for investors to get loans on quality deals. I sware I just walk by a bank these days an alarms go off … as I own too much property bought at 50% discounts or better … Crazy