Edrs - with interest rates the way they are right now, why would you try to flip it in a year?

In your scenario that you outlined, I would continue to rent instead of buying. Right now, there is no certainty that the prices will rise within the next year...especially if these appraisal issues continue. We are recommending that people buy right now simply because the interest rate is too good to pass up. Real estate wealth is built in times like this simply because people are able to get a mortgage for less than what they can rent the home out for. Interest rates will soon be rising - it will not stay this way for ever - so long term investing is recommended. There is too much competition in that price point right now that you will not be able to get a great deal so a short term flip is not recommended. Another thing that people are not aware of is that an FHA loan is assumable - how do you think the value of your home would look to a buyer if interest rates hit 8% but you can offer a home at 5.25%...you do the math. I think if you were looking for long term hold then yes it is a great time to do that. 10 years from now, after you have moved out of the area but you have a great rental property where someone else paid your mortgage for you, you will see the huge wealth potential that Real Estate Investing has to offer.

Jimmy Mulhern

Edrs,

You need to take into consideration Closing Costs AND the risk of "what if" home values drop even more.

Unless you purchase an exceptionally well priced home with no delayed maintenance issues that will force you to spend additional money after you purchase the home - buying for ONE year only may not be a good idea, although I do not know your personal circumstances, so I might be wrong.

Bottom line: take out the calculator and write down all the costs of purchasing the home (taxes, HOA fees, closing costs, etc.) and devide by 12. If you come up with LESS than what you would spend in rent for ONE year, than and only than it makes economic sence to purchase.

You may have other reasons to purchase - it is entirely up to you.

i personally would rent or buy a property by a longer vision. Falls Church is metro area so renting the property should be easy.

think long term.. one year is too short vision.