Look someplace in the Midwest where prices are still very low but rent is climbing.

If discovered, not only do you risk fines and litigation, you'll be forced to tear it down, insurance rates climb and you'd be criminally liable for any injuries on that space (think Oakland warehouse fire).  

Prices climbed fast, and the inventory shrunk.

I've searched a bit and have not come across a post that quite fits an investment opportunity I have been looking into.At the bottom I put a cliffs notes version of the building/surrounding area (probably could have shortened it up, and maybe I'm looking at too many external factors - however let me know)My thoughts - building would be good structurally/mechanically - located in the downtown core - building is already built out into 4 offices and reception area main floor with a kitchenette/half bath2nd floor has 7 offices, 2 baths, 2 storage rooms2 entrances into the building, street parking on 2 sides, building is located across from the local courthouse(Could potentially turn the upper floor into a couple of apartments or one large apartment - rent for 800-1k a mo for one large apt, however rehab $$ would climb - city would be more than willing to change zoning for this and encourages this type of arrangement in the historic buildings - ie office bottom floor, apt top floor)$60k Purchase Price$20k Rehab budgetPotential gross income $2800 per mo (7 offices $400 ea)Guesstimated Pro Forma--  $33600        Gross Income - 7 offices $400 ea       (5040)        15% Vacancy       (2400)        Property Tax       (2500)        Insurance       (6000)        Utilities - figured $500 per mo/gas/elec/water- think this is high though       (1680)        Cap Ex       (4980)        P&I Pmts $60k loan 5.5% interest - 20 year amortization       (4800)        Janitorial - $400/mo - this would probably be lower----------------------------------------------------------------------------------$      6200        Cash FlowI think I could improve on the above cash flow, not sure the Insurance is 100% accurate, could possibly increase gross income if I have more than 7 offices etc.  

I understand the market will climb back up but it's way too violate to depend on a good rate of return.

You already have some experience and with additional effort, will quickly climb the REI ladder to its pinnacle.

You already have some experience and with additional effort, will quickly climb the REI ladder to its pinnacle.

You already have some experience and with additional effort, will quickly climb the REI ladder to its pinnacle.

You already have some experience and with additional effort, will quickly climb the REI ladder to its pinnacle.

Values will not climb for ever and when they turn there will be a lot of appreciation speculators wishing they had taken their pot of gold when they could.