I live in Phoenix, which according to CNN/Money List is a 41.9% overvalued market.
http://money.cnn.com/2006/03/13/real_estate/overvalued_housing_markets/
But looking at the list, I see there are many areas (like Dallas, TX) which are still quite undervalued. I figure it would be a good investment to buy property in those areas. I can get a 10% CAP Rate investing in Texas, which is a great rate and makes me think I can't go wrong. (I could never find that kind of return in Phoenix or California).
So my question: do you think investing in out of state real estate, in "undervalued" areas is a good idea? Or should I avoid real estate altogether since we are entering an uncertain market?
If there are any experienced investors out there, please chime in with your thoughts. Thanks!
2006-06-20
07:37:40
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3 answers
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asked by
tyler
3