Hi Bacali,
This is Allyson, the other realtors basically answered you on this. The only thing I would add is if you are flipping a house look at the neighborhood the house is on and if the neighbors homes are in very nice shape and your home does not need extensive reno's I'd look for a Bank Owned property around a good school in the low 400,000's range. Remember if you are not going to live in the property you can't buy "short Sales" as an investor . You may only buy regular and Bank Owned properties.
I hope this helps, if you need a Bank Owned search email me at Allyson@homesbyallyson.com and I will set it up for you on my web site.
Allyson Alessandrini,
Realtor
408-750-6578

Bacali, that zip code has seen a drop in value this past year. You can buy an REO for $400k -$500k there. Good luck.

Hi everyone,
Thank you very much for all your advise! I really appreciate it.
My question to you now would be how much is the market price in this area right now. I'm sure it depends on the particular location, the condition of the house, and so on, but can anyone give me some idea?
We haven't bought the house yet, and can back off anytime if the calculation is not right.
If anyone can tell me some idea on how much is the market price in that area, it would be a great help. Thanks!

Bacali,
Cheryl has given you excellent information. This is not the time to "flip" properties unless you are purchasing well (40-60%) below the current market. We are advising our clients to purchase homes that they will live in for a minimum of 5 years and we are advising those that are investing to pick up the properties that the numbers will work out for them. Do Not purchase a property at this time that you are not planning on holding on to for at least 5 years.
So I guess the short answer to your question is NO!
Have a great day and buy for your future not for the short term!

Charles Coachman
Keller Williams Realty
San Jose, CA
ccoachman@kwsv.com

Why would you want to do that? If you are THINKING of doing what you posted, the answer is "no" because of the cost of the transaction you would lose money.

Now, if you have already purchased a property and want to sell if for more than you paid to cover your closing costs, no dice that way either. The market has shifted too much.

Perhaps you could re-post a question that we can answer?

Bacali, If you sold it for $530k you would be losing money. There are closing costs and other expenses involved in selling a home. It would take awhile to sell it so you would have to consider the monthly mortgage, property taxes, insurance and utilities that you would have to pay if you would hold the house while it's on the market. Honestly, right now is not a good time to buy and flip. Unless you get a REALLY low price, it's not worth all the trouble for you. Good luck.