Thanks all for weighing in. For whats its worth, the small amount of money I’m going to make on this I made when I bought. Could have flipped it right away at +100k now 9 months later its +70k and that’s after about 30k of improvements. Bottom line maybe 10k to me after all costs. Too little money for all the work but buy selling I can put myself in a position to pick something up later this year when hopefully inventory has picked back up and nobody’s buying. Maybe this time if I can buy under market the market won’t move back to me.
I am having trouble understanding where all the inventory is. Right now in zip 92562 its off over 50% from where it was last year. I understand the concept of shadow inventory but from a practical stand point , at least in the area I track in west Murrieta , I am not seeing houses go back to the bank and then not get listed. The ones I do know of that appear to be shadow inventory all seem to have a story to go with them. For example I have been in touch with one bank about a house that has been on their books for 16 months and it still is not for sale. This would appear to be shadow inventory but in reality they would like nothing more than to sell it. The problem is that as unlikely as this sounds they have been working all this time to evict the former owner who has thrown one legal maneuver after another at them. They have literally been in court for the last year plus. At any rate my plan will fail miserably if the inventory doesn’t start picking up.
TG- I’m with you on the moving thing but at least I’m coming out of single story and can pretty much guarantee I’ll only look at the same as far as rent/purchase. Also I’m reconsidering whether owning land is all its cracked up to be. Although its nice to look at, I found out that acreage costs a lot to maintain in both time and money. I’ve concluded that to own land you have to be rich, retired or retarded and I’m not either of the first two. I think this time I’ll be looking more into the 1/3 to 1/2 acre range.
