We plan to purchase a second home we may retire to in 10 to 15 years. What advice do you offer in selecting a good investment in today’s market?

There are good opportunities to be found in today’s market. However, be cautious in what you deem a bargain. Homes that are in foreclosure, short sales, or on the market by an over-extended seller aren’t always a deal. Some of those homes may be overpriced due to the debt against them. And, often as not, they are sold as-is under stringent loan terms you can’t negotiate.

If you are a knowledgeable, experienced investor and understand the foreclosure/short sale process and can evaulate the integrity of a home before making an offer, a distress sale may be a great opportunity. I recommend you research comps or have an experienced buyer's agent assist you through the process. Interest rates are low and you can, with some cash down, make a good investment purchase that will pay off in the long term. House flipping is risky, so your plan to keep it 10-15 years is a wise strategy.

Remember that if you offer on a short sale or bank-owned property, it usually will take longer to get acceptance than if you were buying directly from an owner. The bank must approve price and terms.