My wife supports my real estate business and lives the life of luxury for doing so.

I would avoid the luxury home market starting off.

Ideally located in a neighborhood that is close to your primary residence, and very familiar in regards to commercial and residential.Optimize your exit strategies and think about how they affect your future investment options.Time the market for both acquisition and sale.To be ultra conservative you can allocate large contingencies on costs.

I believe luxury rentals will see an increase as there is low vacancy rates somewhere around 3%.

A luxurious kitchen and master bedroom w/ ensuite will set me apart from all the competition.

It is a luxury in business to know your target client and be able to select who you are going to do business with.

on the side note - in my books, 2700 sq.ft. is considered HUGE and luxury.

Your website is great if you have good SEO...I do, but that is not a luxury everybody has.I agree with Mr.

So don't look at what the market is today look at what the saturation levels and pricing will most likely be when you come to market with a finished product.Don't be too rosy in your projections.This is what killed many developers who used high leverage and bought in 2007.They overpaid for the old building or land,used too high an ltv (90%),and had high rents expected on the cash flow which skewed the projects anticipated returns.When things finally came to market debt service was high and rent income was low and many developers with non-recourse walked.Today everyone wants to nail you to the wall to lend any money so you have to be ultra conservative in your numbers.

If it helps to know the details, they are as follows ... property is a luxury Hawaiian estate.