Existing home sales spike 5%

Sales of existing homes unexpectedly rose in February, but remain near historically low levels, according to an industry report released Monday.

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This shouldn't be too much of a surprise to anyone... We're having an unseasonally warm Winter in most parts of the country, and this is the time of year when selling usually picks up, combined with low interest rates and smoking deals on houses -- People would be crazy not to be buying right now.

- Hakrjak

What are you buying, if I may ask? (or you are just crazy like the others that are not buying?)
Keep focusing on flips/rehabs? or just picking up ready-to-rent properties?

With each flip I do right now, I pile the profits either into paying off a 2nd or Heloc on an existing rental I have (To increase cashflow), or I put the money towards buying an additional rental. Lots of REO's are in ready-to-rent condition, or only need a coat of paint and some appliances off craigslist, and you are getting them at 70% FMV.

I'm already feeling the credit squeeze though with many banks saying I have too much exposure to residential Real Estate (Even though I don't even have that many houses right now) -- So I'm unsure how much I'll be able to shovel in once I "back the truck up"

Cheers,

- Hakrjak

I experienced the same situation a few months back, before I gave up my efforts of getting more rentals.

I get I got spoiled by the loose lending practices of yore... and now I haven't found banks that are lending at "reasonable" terms (maybe I am the unreasonable, but hey, like I said, got spoiled, who can blame me, I'm just a victim of the situation )

I hear you man... Why does it seem like anytime there is the potential for good cashflow involved, everybody puts their hand into your pocket and tries to claim their piece of the pie? I feel like there are so many paracytes in this biz..

When the market was doing well, it was sellers taking my money... During the downturn -- Then it became mortgage brokers taking my money with higher closing costs, and the title companies started ripping me off.... Now it's banks charging obscene interest rates for investment properties, and asking for crazy terms like 30% down, then they want you to prove you have $80k in the bank or whatever... etc... And of course Realtors have been taking their cut (Sometimes deserved, sometimes not) the entire time!

A lot of hoops to jump through for sure! A lot of barriers to making a dollar...

- Hakrjak