I've been mulling it over as a part-time business on the side. Partnering up with a property manager and working it as a business/investment.

Does anyone feel the market has cooled enough significantly to jump in as a buyer? I am thinking of offering .$70 on the dollar of any property we would bid on.

Any words of wisdom?

Well, I'm not in the real estate business, but I live in the Philly area - about an hour from the Jersey shore. Beach property hasn't cooled off much in that area, from what I can tell.

I suppose if you find the right properties, there's a possibility getting a good deal. But, you should keep in mind that the "rental" business, like any other business, can take a while before you generate positive cash flow. Make sure you know the financials (all the costs!) before jumping in. Personally, I'd start with an area less pricey than the beach - maybe a lake resort, or something. See how that goes, and move up to higher priced stuff.

Just my .02, for whatever it's worth.

Thanks for the reply. I live in the S. Jersey area and yes, I was thinking of the Jersey shore because of proximity with property management.

As you know then, you can drive through any beach town (Ocean City and Wildwood come to mind) and every 5th house is for sale or for rent.

I gotta to think the law of supply and demand has to set in sometime and prices should start to plummet (maybe not, I know real estate market has some insulation to bear markets).

I know the risk is not finding summer renters and a good agent can only remedy that so much.

A lot to think about. . .

We bought a condo in a beach side development four rows back from the beach but with private beach access... we advertised on numerous vacation-rentals-by-owners web sites... and kept it booked most of the time... the key is getting the pricing right their in the zone compared with other similar properties nearby... we had a couple of maids who would come in once a week...
we made about 50% more than the actual house payment averaged over a year... and sold the property for 50% more than we paid for it, just two years later... we had offers and backup offers to acquire the property... if you know how to do your own search engine marketing you can skip the online rental sites and start one of your own.... search engine marketing is what I do...

When I was younger I always loved getting the candy that turned your mouth blue or green. My mother hated it.

It is SO easy to figure out the cost of a mortgage given your bid price/interest rate, insurance, and real estate taxes. Figure out a monthly payment (i.e. 3,000 a month) and look at rental rates in that area. If the "average" rent for a comparable building gives you a sizeable profit, then go for it! Remember that even if you only break even for a few years, you are still building equity and gaining appreciation! Think of it like buying stocks in the stock market. You're SPENDING money, but on something that will BRING IN money in the long term!

Remember: Keep a particular "spread" in mind. If you loan out a $300k building and have a 7% interest rate then you might want to make sure you get 10% of the homes worth in rent a year.

$300k home * 10% = $30k
$30k / 12months = $2500 a month

I always tell myself that 6million in property with a 2% spread is $150k a year in my pocket 6mil in real estate is nothing!