This seems to be a recurring topic. I personally think you should always be buying. Run the numbers and when they work, buy. When they don't, keep looking. If you try to time the real estate market you will be sitting on the sidelines forever.

Hi @Bryan Levine I am in Orlando and our market has been steadily hot for years now. The best thing to do is to get better at finding and analyzing deals.

Whathe if values go up 30% more, and then the correction is 10% off of that? You would miss out on 20% appreciation from right now? Or a correction could come tomorrow. No one can time the market.

@Bryan Levine,If you wait for the "right time", it will never arrive.Adapt as the market changes.If you do pursue condos, remember to include the HOA fees as an operating expense. If it's still positive cash flow, continue your analysis and due diligence on your way to a buy or not decision.

@Bryan Levine I have a list of data that I plan on writing a pretty in depth blog about the Real Estate market. I do think that there is a 'contraction/correction' coming in our market. Hopefully that correction isn't flushed further due to external/foreign events (like Deutche Bank or the host of EU countries drowning in debt). We haven't had a black swan event in some time and there are a lot of moving parts to what can happen in the RE market.With all that said, as investors we buy under 'market value' or purchase more 'distressed' properties for reasons. If you find a good enough deal it wont matter much how far down home values go. I personally am scaling back on marketing and acquisition

@Bryan Levine Just an observation but the last time the market peaked many investors began looking at Condos as well. I believe this is because they are such poor instruments for long term wealth that they were still on the table and priced cheap respective to the SFH markets. With that said, I think this is just an indicator that we are near the top or at least taking a breather from the recent run up. Keep looking, you may have to analyse many deals to find one but they are out there. It is definitely harder to find them but I am still finding them. Maybe one every two to three weeks now vs. at least one per week last year. I wish I could buy them all!

Condo's don't make sense in my area either because the HOA fees are too high. Townhomes can be an option if looking for the low maintenance ownership features of a condo. It may be possible to find a townhome with low HOA fees.

Yes. Generally speaking, condos typically do not make great investments because the condo fees (HOA, Maintenance, etc) eat away your cash flow.

@Curtis Yoder @Walter Key @John Kent I love all the advice. thanks. I use a basic performa to analyze deals. The problem as I see it down here is the condo HOA fee's. Are condo's typically poor investments ?

I love this advice. Most people are waiting to beat the market, well you gotta be a player first. You don't need to wait around for the THE deal, you just need A deal! be persistent, talk to tons of agents, find motivated sellers. If the market is hot, that means you gotta compete like a monster!

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Updated over 8 years ago, 09/20/2016

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Bryan LevinePoster

Investor
Delray Beach, FL

Buying & Selling Real Estate

Wait for correction?

Bryan LevinePoster

Investor
Delray Beach, FL

Posted April 24, 2016 18:04

It's hard to find a good deal down here in Florida. The market is robust. Even REO properties are selling for around market value. Should I just adopt the strategy of waiting it out for a market correction?

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