The US economy is doing well and Real Estate prices in established cities and good neighborhoods are going up!
The capital appreciation opportunity is very clear and the cash flow is excellent!
Foreclosure inventories have come down significantly compared to the peak of foreclosure properties available right after the Sub-Prime crisis. Construction of low priced single family homes has been minimal in the last few years, while housing demand and population growth continued.
The current opportunity is excellent for aggressive and conservative Investors alike; the economic indicators and price increase trends are clear and readily available.
For the last few years after the Subprime crisis, many savvy American and Foreign investors, as well as Fund Managers, have been buying homes at very low prices, and they continue buying them now as prices are rising but they are still well below historical and replacement values; good properties in desirable locations are selling fast and often above asking price. Replacement costs are in the $100,000 to $160,000 range for a typical 1000 ft2 to 1400ft2 3+bedroom /1+ bathroom detached homes.
The prices of the properties we buy are 30% to 70% lower than the price in 2006-2007, before the Subprime Crisis.
You can still find these well-located homes for $70,000 to $100,000 (renting $800 to $1300).
As the foreclosed properties get absorbed prices continue to rise to normal levels.
