Hi Darkhorse,

Anytime is a good time to purchase an investment property. It is especially good when the interest rate is cooperating as it is today. That is if you plan to leverage a banks money supply. The strategy you’re thinking about using I'm very familiar with. When I was a first time home buyer, I did exactly the same thing and today, I coach fellow investors to replicate this same strategy. It worked out very well as I sold my properties a few years ago at the top of the market.

Remember, I said anytime is a good time; well there is more to it than that. The numbers have to work, the property must have a good location, value can be added by improving the property and you have to make the right tax moves to put you in good position in the future.

The profit is in the details.

Let us know if you have any other questions.

"Rocky" G.H. Hawrysz, Realtor®, Broker Associate, e-PRO®, ABR®, SRES®
Prudential California Realty
(209) 444-6610 - Direct Office Line
E-Mail: rocky@prucalifornia.com
Web Site: http://www.TeamHawrysz.com
Lic.: 01468373

As the previous anwser stated, if looking to purchase an investment property, the environment is right. Low prices/low rates. Question is...is it right for you? As you say, you are going to live in it first. This implies that you currently do not have a primary residence. If so, and you haven't owned a home within the last 3 years, you also may qualify for the 10% up to $8,000 tax credit which would futher help you.

Most investment properties currently are being purchased with cash; as investor's are looking for a return higher than the current vehicles i.e. cd's, savings accounts etc, that they currently have their funds tied up in.

My client's are buying a $100,000 - $150,000 houses or duplexes/triplexes/fourplexes, rent it for $1,000-$3500+/- which equals $12,000 - $48,000 per year return minus some expenses and get the write offs and that sure beats the 2-3% the cd or savings account is returning to them.

With this economy, many home owners are losing homes and resorting to renting. However, as you state, many are doing the investment property purchase and there are rentals out there to compete with and you will have to ask yourself if that is what you ultimately want to do.

In short, it is a good time to purchase a home. If you currently don't have one, you will benefit from not throwing rent money down the drain for 5 years if you do own. What the landscape will look like in 5 years is anyones guess. My opinion is purchase the home, live in it and see what tomorrow brings. It is a good time to get a nice home at a lower price with record low rates. If I can help you further, or another fine agent here, please give us a call. I hope I've been helpful.

George Kininmonth
Fowler Mortgage & Real Estate Company
2029 W. March Lane, Suite 103
Stockton, CA
209-649-8114

Dear Darkhorse,

The reason so many others are doing the same thing is because it is the right thing to do, now that home prices are so low and interest rates are as well. As it seems, you are thinking in longer terms to hold on to your property, which, in my opinion, is very wise. The only competition you are facing right now is that the inventory of available homes are very low, and you would be competing against other offers. Please feel free to look for properties on my website, http://www.evabradleyrealtor.com. It is free and with no obligation.

Good luck!