Did you ever lose money on a home?

Many people talk about real estate as a solid investment, the best ever. I'm sure you've seen the infommercials.
I had the opposite experience. My wife and I bought a starter home. When it was time for the two of us to get divorced, 7 years later, the house was worth less on the market than what we owed on it.
Did you ever get burned in real estate like that?

We had to let the house go through foreclosure and bankruptcy, rather than sell it and be responsible for the difference.

Unfortunately, most of the people who try to do what they hear in the infomercials end up with the same results as you did. Just like any other investments (stocks, bonds, mutual funds, etc.), you need to do your homework ... and this is certainly one area where the old saying "if it sounds too good to be true, it probably is" really is right on the money!

There is absolutely no way to tell what the market is going to do and whether homes will continue to appreciate in value at the same rate as they have in the past. One small thing happening in a particular area can kill the market for many years. Using a Realtor for investment purposes ... just like buying a home for your principal residence ... is always a good idea. We will have a good idea about what the potential will be and can advise you the best way to go.

Most of us who work with investors also have the ability of calculating out the return on investment (with or without tax considerations) so that you will know before you buy what to expect. During this process, if the numbers don't make sense, then you walk away.

There are a multitude of taxes, fees, and associated costs with buying and selling real estate. Remember that (in Maryland) the sales commission is paid by the seller in most instances, so you can buy a property without that fee. However, if you sell a $200,000 house, you can expect to pay at least $10,000 in real estate commissions. There will be typically another $7,000 to $10,000 in other settlement expenses, so if your outstanding mortgage balance is $180,000, you will just about break even when you sell.

Unfortunately, it sounds like your situation caused you to sell possibly quicker than your original plans, which will inevitably screw up the best made plans. That is just another one of the unforeseen things that can go wrong!