As stated, you should know your market, if you were a spec builder, that should be a slam dunk for you.

However, for spec builds, you might be OK, but watch the comps.

During this time period we also began building custom spec houses as an entry into the higher end market.

Being contractor/developers that build spec homes in coastal Orange County, CA (where many of the cities are very open to Vacation Rentals etc. ), I was curious if any of you have ever purchased a new home or condo, specifically to be used as a vacation or short term rental? 

I'm not looking to spec invest, just want to have some knowledge that the area is a good area and is looking up.

I prefer to call it what it is (and what the company I founded and sold did) which is spec remodeling.

I just started 2 new, unsold specs as I hope to be a little ahead of the curve on new const you suggest.Mitch-I can't imagine Irvine being a good area to buy homes for long term hold.

. ($400,000 each property).I'd then use $100,000 on a spec building deal.Finally, I'd use the remaining $100,000 to renovate my house.

Here in Oregon, if a person owns a parcel of land in the name of an LLC, and decides to build a spec house on that parcel, even if the person is a licensed GC in Oregon, you are required to have a Developers license too and carry a bond and insurance. 

Is your goal to spec build, get into a MFR property or purchase, rehab & flip for a profit?