RE is not a market with great liquidity or with substitution (1 house is not exactly the same as another compared to 100 shares in a company being the same as 100 shares of the same company).You do need to know your market and you do need to adjust to local conditions as they change.RE prices do not fall all that rapidly.

While even these "star" markets will be working their way through a period of price adjustments or a lengthier listing period at least their core fundamentals are sound.Those home owners who are unable to pay their upwards adjusted mortgage payments and who have not been able to re-negotiate their loan terms with their Note holders will assuredly become "tomorrow's renters".It's already started in many areas... rental availabilities are rapidly shrinking = a strong potential for investors willing to build SFRS for rental or for "sale" under Lease with Option to Purchase contracts, 2-4 unit multi-family and new apartment complexes.In Myrtle Beach and parts of Charleston (SC) developers of recently completed condos are now replacing unresponded to FOR SALE signs with "Lease with Option to Buy" signs and are now actually seeing evidence that strategy is WORKING.Savvy real estate investors are targeting "spec" builders with unsold inventory that has become a "money drain" in terms of interest carry and are buying SFRs for 10% - 20% below actual cost to complete.

Many of these purchases are near foreclosure, which happens rapidly in Texas.

I am currently apart of a multi company business consisting of a construction company and an investment company located in the Grand Rapids/Kalamazoo Area here in Michigan.Sincerely,Andy Lethcoe(Michigan Investor)

In addition, our country is rapidly becoming a service economy which doesn't actually make anything.

I'm with Wheatie and Ohio Realtor in thinking that the numbers are fishy in a rapidly declining market.

Trying to acquire a house for rental purposes, long term strategy is to rapidly build a rental porfolioPurhcase Price is about $55,000 two financing options available:1. 90% loan which will be at %7.25 interest and tie up $5500 down payment..will also cost and additional $468 in private mortgage insurance(PMI).2. 80% loan, @ %7 interest, will tie up $11,000 down payment, but will save the PMI ($468 a year) and a %0.25 in interest and ofcourse financing less which will lead lesser payments and lower interest paid.. the total savings of interest saved, PMI, and cost of barrowed less funds will come out to about $90 a month which is about $1080 a year savings over finance plan #1..which way is better to go?

New development is rapidly approaching from Downtown, while other nearby neighborhoods with similar 1920-1930 homes are being lovingly restored.

If prices are still rapidly appreciating in your area, then consider the cost of holding over the winter as compared to the better expected price in the spring and the risk that prices will drop.Good Luck,Mike

I know that the areas that I do appraisals in that were increasing at an extremely rapid rate a few years ago are starting to stall and even decrease in value.