Case study #2
When I first moved to the area I attended an open house. One of the neighbors stopped by while we were there and after he left the real estate agent told us the neighbor owned several houses in the area. She then commented that she did not know how he slept at night and that we should probably wait six months or so before we consider buying (Ha! That will show her for trying to time a bubble burst).
Now that I know how, I looked up the transaction history for that neighbor.
I've found seven houses purchased since 2003. One was flipped in two months for an $80k gain. Another was flipped in four months for a $100k gain. One was renovated for a year and sold for a nearly 100% gain of $400k (in one year!). He has another on the market right now that will probably see another gain of $400k. His first house was sold after two years but I cannot find the purchased price so I do not know how much he made. That leaves him with two houses not on the market. One was purchased in the last six months for over $1M. I suspect that is his residence. Even if he completely lost all of the value in the other house, he would still be up $500k over 4 years. That's not too shabby. While he is helping to drive up prices, it looks like he is going to be fine if the market turns south.
Now that I know how, I looked up the transaction history for that neighbor.
I've found seven houses purchased since 2003. One was flipped in two months for an $80k gain. Another was flipped in four months for a $100k gain. One was renovated for a year and sold for a nearly 100% gain of $400k (in one year!). He has another on the market right now that will probably see another gain of $400k. His first house was sold after two years but I cannot find the purchased price so I do not know how much he made. That leaves him with two houses not on the market. One was purchased in the last six months for over $1M. I suspect that is his residence. Even if he completely lost all of the value in the other house, he would still be up $500k over 4 years. That's not too shabby. While he is helping to drive up prices, it looks like he is going to be fine if the market turns south.
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