No more buying speculative properties and using a "furniture allowance" to make the payments.

They built thousands and thousands of units just like this in FL, catering to a booming market for speculators.

Another area they usual fail to even consider is stocks move on emotions and speculative news minute by minute.

I am an options trader, decent with numbers and get 20% cash on cash with non-directional, non-speculative options trading with consistency for the last 5+ years.Deal: This is the current property under contract:https://www.redfin.com/MD/Bethesda/9825-Old-George...The property has appraised for $835k as a tear down in the recent past, so purchase price seems like a good deal.

If you are looking for appreciation, that is more speculation, and given how over inflated the housing market here is at the moment I advise you consider what would happen if your purchased & your value suddenly declined by %25.

This deal is speculation...not investing.My reccomendation?  

It's mainly speculators riding on the appreciation freight train.Without positive cash flow investing for most people is unaffordable.

On the surface if you were to follow the 'buy low, sell high' mantra then you would not be in the wrong.Mark is correct although with the amount of population and job growth in Texas I wouldn't be one to speculate just how far down the road that correction will happen.

There's the speculative aspect: the house is on septic now, but if it becomes possible to tie in to the public sewer, the lot could possibly be subdivided according to zoning laws, after which half the lot could be sold for a nice sum.

When you flip houses you are actually buying the property on speculation that you will be able to sell it for a premium once you rehab it.