October's drop in new-home construction is good news for the real estate market.

The stock market took a tumble yesterday because of investor reaction to what is being called a surprising drop in housing starts. The Commerce Department said October new home construction fell 10.6 percent from the previous month, dropping to a six-month low …Full Story

Tenants can help pay the bills -- or create more. (Photo: iStockphoto)

In my last post, I told you how we ended up “reluctant” -- and long-distance -- landlords. For the past year, we hoped the people living in our Memphis-area house would buy it. But they defaulted on their lease-purchase contract and left us with a major clean-up.

They also left us with our first lesson. Don’t expect that tenants will treat your house with any respect at all, especially if they don’t have a deposit hanging in the balance …Full Story

Our Memphis home has been badly treated by tenants.

Call me the reluctant landlord.

Our story starts simply enough: My husband got a new job in the Memphis area. It was a big pay bump from his current position, and we’d be closer to our families. So we jumped at the chance. We bought a great house, thinking we’d be there for years. We imagined our kids growing up there, big family dinners and a bright future …Full Story

Vacation homes are becoming a burden for some owners. (Photo: iStockphoto)

There was a time when it seemed that everyone owned a vacation home -- or at least dreamed of owning one, anyway. Vacation homes were seen as cash cows that would reap easy money in quick appreciation, plus the added bonus that rental money would bring in.

Oh, how times have changed. These days, you could probably pick up a vacation home for a relative bargain, but not so many people are buying them these days -- at least compared to the heyday of the housing boom …Full Story

We are still considering a property that has two units in disrepair.

Just when we were about to quit our search for a single-family house to purchase as an investment rental property, we may get another chance at a house we failed to get because we were too cautious in our bid. We have also decided to seriously consider another property that is significantly run down, but may offer the best opportunity for solid positive cash flow.

That’s the way it is when shopping for real estate, whether it’s buying a house you want to make a home or an investment property. Although I’m not sure how either of these properties will work out, I do know that we will take a hiatus from our search if we can’t close on one of them …Full Story

The porch on this potential investment property is about to completely fall apart.

Distressed properties are tricky and a lot depends on your definition of “distress.” For me, distressed means major issues -- a property that may have structural problems, a cracked slab, dangerous wiring, the plumbing is shot or extensive interior damage caused by people or nature …Full Story

This rental property has two extra bedrooms that appear to have been added without permits.

After getting skunked in several attempts to purchase a house to use as a rental property in our target city, we’ve decided to expand the search to nearby towns. We’re also considering properties that we don’t think will appeal to owner-occupied buyers or investors who don’t want to put much work into their purchase …Full Story

With so much competition in our local market, we are considering an ugly duckling property as an investment.

When plans aren’t going as expected, the best course is usually to alter your plans. As the saying goes, “Discretion is the better part of valor.” …Full Story

For those looking to rehab a newly purchased home or remodel an old one, 203(k) loans can provide some cash. (Photo: iStockphoto)

With the large number of distressed properties on the market right now, and a prediction that more foreclosures are coming, it makes sense that home buyers are taking a close look at these properties. They're great bargains, but some of them need major work. I highlighted this in a recent blog post about calculating the cost of buying a foreclosure …Full Story

We set our sights on this house, which has good-sized lot, recent upgrades and lots of potential.

After passing on a bank-owned property last week because it was located next to a parking area at the back of a neighborhood shopping center, we saw a foreclosed property this week that we decided to make an offer on …Full Story