Now obviously if like your wife you bought long enough ago rising rents have made her property viable but purchase price to rents out here are just nuts especially with the current climate of appreciation.I invest buy and hold out of state but I do so where I grew up and do know the areas so it makes it much more doable.I don't flip myself, but know some that do and what I have heard is that the # of deals has absolutely decreased but that the margins have gone up so the 2 have offset each other.I think were I in your position, evaluate if your flipper friends would be willing to help you break into the market.

You can get in light (low down) and turn the property around by decreasing expenses and increasing rents.Nice to meet a new friend in B.C.!

Does it make sense to invest in a city you may be living in temporarily to take advantage of opportunities?

I currently live in a city that I may not stay in long-term. I may have to move in the next couple of years....

So I started looking at forms of commercial real estate that could be both an investment and a TEMPORARY JOB.

The back taxes would be handled basically as Ron Climer outlined, but you DO want to pro-rate the taxes for the current tax year, so you decrease the net to seller.

Having said that, why are we seeing a decrease in inventory when the jobs are flat or decreasing in some area.

As this is your first project, and your household income will significantly decrease once construction starts, my guess is you'd be looking at a lender that somehow is interested in the proposed project, would be willing to finish it if you can't (you've spent your reserves), and will be deinitely lending at a high cost.

If you want to decrease occupancy advertise it as a two bedroom with an office or something along those lines.

I bought it near retail price in 2006 and it's steadily decreased in price since.  

In other words, he's accounting for his increased risk when he makes the loan (his risk being increased by virtue of the fact that my risk is decreased).So, given the situation where in option #2 I'm only risking $20K (and again ignoring any emotions I might feel), who has more financial risk -- the guy paying all cash or the guy who borrows some?