I am sure you have all be told this, but I think it bears repeating. You don't make money on housing investments when you sell the house, you make your money when you purchase the house. What does that mean? It means that it does not matter at what price you sell the house, your profit is realized based on your purchase price. I know before I make an offer, what the house might sell for within about 5% up or or down. For example. I would know that the average price per sq. ft. in a given area is $100. I know that based on the quality of the work I have done in the past, I can always meet or beat "average" condition. Sure, the economy may be weak and it may take longer to sell the house, but I know that I will get somewhere between $95-$105 at some point. I know that I need to purchase for 60%-70% of sale price or less. What does that mean? I know I cannot pay retail and sell retail. I must buy wholesale and sell retail. A good rule of thumb is that if you can make $10,000 on a house in 6 months, your have done well. The important thing is to not take longer than 6 months.
