How much higher can prices go??

I’m constantly amazed at what properties are selling for in California. Small little 1,000 sq ft places going for $700k. Who can afford this? And if someone could afford it, why would they buy such a small place? I’m just frustrated because I would like to invest in real estate, but California, and most other states now, are just getting rediculously expensive. I’m affraid, knowing my luck, the minute I buy a house, the market will crash!

Hello, You may want to consider investing in other states close by. Are you looking at residential, commercial or both?

Even states close by are rediculous, or quickly getting there. I guess the real problem is not necessarily how high the prices are currently, it’s where there’ll be at in a year or 2 from now. My concern is getting in on the top and then watching it drop right after. My concern is that realistically, at some point, people can simply not afford the houses any longer. It’s also inevitable that interest rates will be increasing from here on out so I believe that would have a HUGE impact on prices. That’s the only reason (IMO) why prices are so dang high right now. It allows someone making $15/hr to afford a $600,000 house. But once the rates start going up, those guys are going to be in a world of hurt.

Mostly interested in residential right now, for both flipping and holding/renting. Any suggestions on what states to look at? I thought about AZ, NV and TX, I’m hearing that those markets are pretty hot as well. I’m just concerned about buying in a hot market. I’m a little more comfortable in a buyer’s market, like Ohio, but it’s a little too far from Cali to realistically pursue.

Why is it unrealistic? You can have someone take care of the maintenance. But you are right when you say Ohio has a buyer’s market! :slight_smile:

Based on my experience, NO ONE cares about your possesions as much as you do. Heck, even being there when they installed my A/C system, they still screwed it up. I can’t even imagine how it would’ve turned out if I wasn’t even there to supervise it. I’m just VERY leary of entrusting my properties to someone else. Although, I must admit that when I used to rent a condo, the property manager I paid my rent to seemed very good. It was just a husband and wife team and that’s all they did. So maybe it wouldn’t be too bad if I found another husband and wife team, as opposed to a large property management company where you’re treated as just a number.