http://bigpicture.typepad.com/comments/2008/06/exisiting-home.html

Everyone has seen the main stream press, but finding good data/information in blogs is one thing I am proud of.  As a Realtor, you need to keep positive for your clients.  That is always a must.  As a investor, I want to find stuff that has positive cash flow, and is going to hold its value to inflation. 

So its a fine line between the two, but as someone who worked with agents before getting my license, I want them to know what is going on.   I want them to be honest with how they see the market.

So I will say what I think.

We have a soft market here.  Like the article says, there is alot of of short sales going on nationwide.  I seen it. There is alot of properties who’s owners are in distress, or bank owned property that is bringing down prices.   I seen recently in Arlington Heights a townhouse that was $50,000 less that others being sold in a subdivison.  Biggest issue was the urine smell in the carpet and being outdated.  With some work, decent down payment. someone could have a decent home, and their monthly cost could be better than rent.

So as a investor, I am glad to see folks monthly costs coming down for owning property. When something has positive cash flow, it is a awesome asset to have.  The tax breaks are nice to have around April 15th.

So from my time as an investor in the Chicagoland market, what I want is-

It has to pay for itself to work. For rental housing, rents are based on what is the average salary of the area. Then the 64,000 question is, how much of a premium will a renter pay to become a homeowner?  As a investor, you want to see how to profit from the rental property business.  For awhile, especially in 2004, it was hard to find property that cash flowed.  This was before my licence in 2006.

Today,

the rental market is very strong in the area. Houses for rent are moving. This is the time folks like to move in around here.  Folks with great scores are sitting on the sidelines.  Thing is they might have good credit, but do not have cash to work with on such.  They still need a place to rent, and the activity shows.

For buyers, they have choices these days.  You can go look for a long time in a small area. 

For investors, you can find deals out there. When stuff starts to cash flow with rents, then properties will move up in sales.  Right now a good percentage of sales is on distressed properties. 

Biggest part is, math is going to be back in style for real estate.  Those who do their homework will find ways to make things work.