From Realtor Magazine Online, Daily Real Estate News February 24, 2009
Home sales doubled in California in the fourth quarter of 2008 as investors and speculators bought foreclosed properties—cheap.
"This is the buying opportunity of our lifetime," said Bruce Norris, head of an investment group that expects to purchase at least 100 homes this year in Southern California.
Norris Investment Group prefers properties built between 1980 and 1990 that are smaller than 2,000 square feet. Norris says these homes usually don’t have too many maintenance issues and are the easiest to both rent and sell.
Typically, Norris pays somewhere around $50,000 for these properties and spends another $30,000 on repairs. He expect to rent these properties for at least $1,200 a month until the market for them turns. He expects that time won’t be too far away.
"You cannot have this (low) level of pricing be permanent because it costs too much to build a home [in California]," Norris said. "That's how you know you're making a logical decision when everything is falling around you. When you can buy a finished product someone will want to live in for $55,000, that just has to make somebody pretty wealthy someday."
Source: Reuters, Dan Whitcomb (02/23/2009)
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