Quote Originally Posted by tony
a) There is a ton of inventory, with fewer buyers. This alone drives prices down, even if you are not looking to invest in real estate it still makes for a good time to buy a house. I assume the only hard part is that the qualifications for a home loan just got harder considering the mortgage crisis. But this is a cycle, the market always makes a comeback and those prices will rise again over time.
this is already happening. Nationally a new 3br/2ba has dropped about 20k since last year, from about 213k to about 193k.

Quote Originally Posted by tony
b) Inflation, with home values dropping the cost of goods are going up. Again I'm no expert but this says to me that it is only a matter of time before home prices do the same. If you get your foot in now its likely you will be able to ride the appreciation wave.
partly true. The problem right now is the overabundance of empty homes and the mortgage companies are working under very strict rules. With so many foreclosures right now it may be a little early to jump in. This month home sales did make a jump though, up 3% over last months numbers.

Quote Originally Posted by tony
I'm posting this for feedback and information purposes. I currently have a house and considering renting it out then purchasing a duplex. I figure if I can build up a good RE portfolio I won't have to work as hard in the future.

I have some other things to add but limited time, I'll add more later.
again I think its a little early unless you have the capital to hold on to them empty for 6+ months while looking for renters.