That definately makes sense.

Thanks for the advice.I spent all last night reading several of the posts in the foreclosure forum and I can definately say I learned quite a bit just by doing that.

Property values definately have gone up drastically.

I would say that smart rehabbing is very important to the process, but you are right, buying the property at the right price is the most important aspect.

Jimmy,definitely, it doesn't matter if you have a property worth 230,000 and you're buying it for a dollar...well maybe not that far below market :D - but what makes a property a good prospect is if it matches your EXIT STRATEGYthis is made up of many different factors.Your exit strategy (or goal of purchase) is the most important aspect for your investment approach because it establishes your boundries and lets you know exactly where you stand and where you want to go!

I'm just finishing an Architecture program, so I really enjoy the design + build aspect of the real estate business.

He outlines some of the different aspects of exactly what you are facing.

Dealer status and homestead tax free gains are separate subjects from exchanges, though they do intermingle in some ways.Dealer status comes from flipping "too many" properties (a definition not definitively defined by the IRS).

Finding what works is definately overwhelming but foreclosure is a smaller niche than just I buy houses.

As I mentioned in the other post, I've been doing research on all aspects of real estate investing for two years while slowly building up my knowledge and contacts.