We've not seen anything like this previously. There have been hurricane disruptions, like Andrew, which was a temporary thing and the market bounced back, followed by a return of a red-hot housing market with housing prices hitting new highs in 2004. |
What's been happening in markets with tight supply is you have people bidding over the asking price. That's what's accounted for this abnormal rate of price growth. |
You get to a certain level of that doing that for a while, and you can't sustain that. Nor do you want to. |
You might as well roll dice. This strategy is ill advised. |
You need to understand cash flow. What's going to be your income and expenses on your property? You need good entrepreneurial skills. You need to have six months of reserves in case things don't work out the way you think it will. |