Reply by sandhill

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Posted on Home appraisals and additions/remodels values

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2128 posts in 3919 days

#1 posted 09-01-2011 04:15 AM

ALL the old rules and theories no longer apply to real estate investing as a money making endeavor. Been there done that! I have bought and sold or flipped 5 houses and got out of it in 2003 bought a house in 2005 for 200K put 60K into it and right now it has a value of under 60K. It turns out the house is 550 square feet less than was reported in the original appraisal I spoke to 2 lawyers even had a case going on for 7 months and the bottom line is both said “Your Screwed” luckily I love where I am and love the house I have. I am 60 feet from the water and enjoy seeing dolphins and manatees travel up and down the river to the Gulf of Mexico I can Kayak right from my back yard. I guess we will pass it onto our kids to enjoy as a vacation home or for rental income. Lissajous hit the nail on the head a home is a home and not an investment to make money on. If your investing buy a house your not going to live in and sell it high or rent it or both.

I like REIT’s A LOT! In fact I LOVE, LOVE LOVE them I am long on two and roll the dividends back in. I have been holding them for 2 years now and enjoy a 18% return year over year so if you want to invest in real estate buy a REIT but do your home work and know how they work. A word of caution when interest rates go up they can loose value fast, there is a rumor going around about a nation wide refinance program, this could hurt all REIT’s that do gov’t backed mortgages so you may want to look into other types.

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