I suspect we're reaching a peak and would be very cautious when betting on appreciation because ten years of growth in a hot market like SoCal can be wiped out in one year.

On the surface it seems with low inventory and higher costs even for depressed properties it is better to fix and flip until the market adjusts a little bit. 

It has given us a lot to think about and we are already making adjustments to narrow down our criteria.

As long as you haven't closed, you can still back out and adjust your strategy.

:@Taylor L.thank you for your valuable suggestion You bet.

People using adjustable rate mortgages and balloons (not as common at the moment) are likely to lose everything.6.

Adjusting there - you'll eat another $150-200 on financing (plus all the closing costs and fees that will come with the purchase of that place that are not included).And are you sure you'll get $800/unit for only $87K without having to drop at least $20K in fixing up (or more)? 

My bet is that the water lines can be fixed conventionally after using American Leak Detection's survey of the leaks -- we rarely replace entire water lines.As for the numbers, you have to buy this based on not greater than 1/2 of the value of the park when finished, less all cap-x to inject into it.

In terms of negotiating a price and management contract, which side of the bet would you prefer to be on?  

@Gregory Cudzilo market in Virginia Beach right now is tough with most market properties selling in days above list, best bet would be to have that conversation with your agent up front so they know what they are in for and can better advise you on the current market in the Hampton roads region