TJ

Hi Peter,

Prices have been descending fairly dramatically in many areas of North County and many are reporting that this trend is likely to continue for some time.

If you also believe this to be true, I would suggest looking for investments which will provide positive cash flow at this point (rather than looking for properties to flip). I do believe in holding a property for appreciation, however, the market will likely take quite a bit of time turn and move in a positive direction.

With respect to where to look, there are a lot of great opportunities all over the county now.
I'd suggest first considering the market you expect to target (young adults, young families, eldery, etc). Once you've done that look at areas that continue to be highly attractive in terms of location, (such as near the beach for young adults, in a terrific school district for young families, centrally located near services for the elderly). Given the likely continued economic decline, you may want to avoid "fringe" areas/markets at this time. Once you've found a property, buy it right! Try to find something in distress where you can negotiate a good deal for yourself. By negotiating your purchase well, you will be able to offer potential renters more incentives while still maintaining a postive cash flow.

Hope this helps... Good luck with your search.

(Just so you know I am not a realtor, however, I am a real estate analyst and cover most of the major markets in San Diego and Southern Riverside counties...)

Regards,
Thor - Wed May 7 2008, 13:26