As asset class cycles happen lenders get hot on certain types of property and then cool off to it once it seems overheated.That's when newer lenders jump in with great terms on inflated properties.

So long as each "day" you progress a little bit more, you'll do well -- "Rise like a palm tree and you shall fall like a coconut" (Caribbean proverb)best of luck!!!

If we're buying a single family home that is not undervalued or a foreclosure in a growing area where home prices are expected to rise, shouldn't we reasonably assume that its value will go up.. as we expect to happen with our own home?

my biggest concern is conducting this in a possibly inflated market.

Are they dropping because the prices are over inflated as they are presently?

We need to decide whether we are going to move into the house - which would decrease our current living expenses by ~$500 per month because the tenant would be paying the HOA and club dues, and we wouldn't pay inflated club prices just for convenience- or stay in the condo, and take our $200 cash flow from the house?

You could also point out that putting money under the mattress is actually losing money from inflation.

Property values are rising at above average rates in Texas and below average here due to our weak economic climate.

Home prices are rising again and people are buying.

It probably is not much of a secret that Spring prices are usually fully inflated.