Rehhabing in a buyers market??

Question

I live in the FL suburbs where property value has literally doubled in the last few years. Recently the values in the area have neutralized and there are many fsbos and lot of homes on the market, many people believe the value will begin to decrease because of the competition. My question is would this be the right time to buy from a motivated seller, considering I rehab and relist in a buyers market? For a begginner it doesn't sound to promising. Any thoughts or suggestions?? much appreciated..

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Ken Hicks · Answer

I also have that concern of prices droping and there are a ton of homes on the market now. Even the people facing forclosure are hard to get. I just got a call about a house that has been on the market for 4 months and no offers. the price is $71,900 they owe $68,000. Just enough for the realtor. I would need to be around $35,000 to take this home. It's in a bad location. oh well I guess i'll wait till the bank has it. I guess just hang in there and continue to buy smart. LOL yeah those prices are cheap. My sister just bought a house at an auction for $25,000 it needs about $15,000 in repairs. ARV $60,000

Jason Barnett · Answer

If you believe that a lot of people are going to go into foreclosure then you should really consider rental units.  They won't give you the gobs of cash, but they are good during the rough times.

However, if you *don't* think the price reduction will be due to foreclosure then you should look at other areas.  Some areas have prices that are "mountains and valleys" while others are "ho-hum".