As a general rule our investing business focuses on buying distressed real estate properties, rehabing them and renting them to good long term tenants. Over the past year we've been able to generate on average a 20% annual return for each single family house we've purchased using this model.

From time to time we need to generate capital to finance new acquisitions. Flipping retail homes is one way to raise relatively quick capital albeit it can take up to 6 months to get cashed out. Flipping is generally frowned upon by sophisticated investors and I for one generally agree. But there are times when waiting 5 to 10 years before cashing out of a rental property is just too long to wait to unlock your equity in an investment.

We found a good deal on a 4 bedroom 2.5 bath 2800 sq ft home in a strategic area of Michigan for about $57,000. We intend on investing another $35,000 into repairs and improvements. Comparable homes in the area are selling between $130,000 to $150,000 in under 6 months. This would give a net profit of between $38,000 to $58,000 before closing costs are factored in.

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Buying opportunities, for those looking for bargain deals, are still good and should extend well into 2010 and 2011. Housing starts according to the Commerce Dept. have come in lower than expected for 2009.

One would naturally think, as home builders attempt to reduce inventory, that home prices would stabilize. To a certain extent they have stabilized albeit temporary.

First time home buyers who have been sitting on fences, automobiles and motorbikes are now out in force trying to take advantage of the $8,000 tax credit set forth by the U.S. government. Ironically, the tax credit is due to expire on November 30'th. This small flood of home buyers has temporarily created a high demand in low to middle income housing which in turn has created more competition among investors seeking cheap deals on foreclosures and HUD homes.

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It would make sense to us as consumers that if our home values are plummeting due to the stale economy, that the taxes we pay on them would draw back for some relief as well. It's not a pleasant thought, but by the time the lower taxable values may be realized by the owners, the local governments will most likely be stretched so thin that the rates will have to be raised as well. We may not have much levity when it comes to lowering or keeping our taxes at an affordable and fair rate, nor can we do much about the tax policy that is controlled by the government. But you can most assuredly, make sure that your tax assessment is equitable to your property by arming yourself so as not to be overpaying.

Take a close look at the following three ways to empower yourself when facing an assessment increase:

First and foremost, check your local assessor's office for errors on your homes details. Make sure your square footage, rooms and improvements, if any, are listed exactly as your home is. Humans make errors and the assessor will most likely adjust your assessment on the spot should you point out such an error to them. Most homeowners aren't even remotely aware of inconsistencies in regards to their assessments and tend to just accept things at face value; especially in the older neighborhoods where the transfer to computers may have had to be done from paper records. Visit your local assessor's office or web site and make sure everything is copasetic about your homes details.

While you're at it that web site or in the office, go ahead and pull the neighbors cards as for a comparison in style and value. Pull at least 5 other similar properties within 5 miles of your home and if they are assessed at 10% lower then yours, you could have a very good argument for the lowering of yours. Keeping equity amongst the owners is a big part of the assessors' job.

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