I'm in the Metro Orlando area (Osceola, Seminole, Orange, Brevard, Volusia counties) and I was told the best strategy for me (excellent credit, no home, about $5K in cash) was to trade-up given the market here in Central Florida. With about 26K homes in inventory, this person says it will be extremely difficult to sell a rehab unless I was dealing in the luxury home market where sales have continued to be strong.
I'm interested in hearing another opinion on the best strategy for a market like this.
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There to many REO's and even if you sell for cheap price you could find a great investment. Just small addition to Charles reply.
trade up as in 1031 exchange? If so, remember you can't really afford to touch the cash and that means you need to cover your buy out of pocket.
That's survey, attorney fee, etc. etc. It gets expensive when you can't use the equity from your sale. Probably that's what they mean when they're talking trade up. Sure forces discipline.
I don't follow the logic re: trading up because of a declining market. You still have to sell your property! In a declining market, it makes sense to use strategies that require longer hold times.
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