Obviously this is all speculation but the guy seemed pretty straight forward.

But I'm speculating.  

But I can't bring myself to accept a negative cash flow in the meantime, just on principle - it seems a lot more like speculation (Kiyosaki taught me better, lol).Anyway, thanks for sharing.

One word: demand and speculation are driving prices In Boston area and they are already past peak values of 2005/2006...

That's how regulations have made it impossible to drive up prices and hinder speculation.

Either way, it is a useful thing to have as a Real Estate Investor ... being labeled a speculator doesn't hurt and you can just tuck your head in if you need to to ride out the downturn, though those are the best times to seek out additional shells :)

I recently decided to build a speculative home and spent about 117k to do it.

Basically you're speculating that the value is going to go up. 

Now if you are expecting gentrification now when/where there hasn't been then you are speculating. 

That would be a good place to ask the pro's how they do it.If I had to speculate on how I would do it; I'd find whatever city I think provides the best short term profit combined with a hopeful long term outlook and I'd go ask around for an awesome property manager there.