Re-locate To Invest
i live in www.california.the median home price in my area is 320,000 or www.so.i have $180,000 www.equity.im thinking that if i sold my house and moved to another state,say idaho,i could afford to buy more fixers or even acreage and build custm houses www.maybe.im thinkin that i could make a move to another state,get heavy into several rehab projects,make enough dough off that to move back to cali and do it again here,cause i could afford it then.anyone in a same situation?basically i want to make a bold move and get more of money working for me.please,any thoughts would help
I know it is tempting to move to an area where the prices are much lower. Remember this: If the prices are lower, then the time it takes to sell could be a lot longer.
The short time it takes to sell has fueled this flipping craze. Real estate traditionally has not been that liquid; 180 days to sell was normal at one time and is still normal in some areas.
I fell into this trap in my home state. I live in an area that because of its proximity to NYC, has become a booming bedroom community instead of the dying rust belt town that it was.
I bought some properties in the boondocks because of the low prices. I discovered what I have known all along; location matters. Market time is much longer than the 5 days I am used to in my home town.
My advice: work harder looking for deals in your present location. You make your money when you buy. I hope this makes sense.
One last thing...I am a real estate speculator; not the best, but good enough to afford a laptop and the time to type on it in the middle of a work day without a boss looking over my shoulder.
While I was out chasing deals, I missed two great buys a few hundred yards from my house, right under my nose.
A modest stone house foreclosure on one acre, needing a septic and furnace was listed for $116,000, a few years back. I looked into it but it was not a good deal at that time. I forgot about it, even though I drove by it several times a day. A New Yorker ended up buying it for $50K and sold it a couple of years later for $159,900; it is worth even more now.
A vacant wooded lot in a not so good, but buildable location was listed for $25K. A clever speculator, a real master, got it for $8,000. He then listed it for $29,900; and I watched the tire kickers waste his time as I drove past. He kept raising the price, and after two years sold for $74,000!!
I have done well, but I missed these two deals, literally in my own backyard, while I was looking for the land of milk and honey.