I thought I would clear this up. If you are investing in Real Estate, most likely you are in it for the long haul (5 years or so). If you have Home A priced at appraisal or 100% LTV and you have Home B priced at $100,000 below appraisal, statistically you will want to buy the home priced under appraisal to give you a head start on building equity over the next 5 years. Let me stress this has very little to do with what the home can sell for tomorrow!!! That is not to say that Home A is not a good deal, but any edge you can gain in Real Estate helps!

Of course this doesn’t apply to flippers. We do our fare share of flipping but the big bucks can be made in holding homes.

If you are at all interested in investing in Real Estate, please do not hesitate to contact with any questions you may have!