Stay away from condo conversions at a peak. By the time you’re done, the market has moved against you. Case in point, San Diego, Orlando, and Miami all have a GLUT of condos that aren’t selling. Plus there are more to come that demand can handle because people don’t understand real estate trends.
Condo sales are the first to take a dive when a market slows.
Options are a great strategy in any market. You can generate cash to invest whereever you want.
Are you talking about a hot market ready to cool off? You sell all those properties that are not your long term keepers and sit on the sidelines. Take your equities in cash and wait for a more favorable buying opportunity to reinvest.
There will be foreclosures on the way down. A lot of bargains to replant your cash.
The thing about real estate cycles is there are always those who arrive late to the dance and are willing to pay top dollar. This creates a lag window of opportunity in which to sell. Good for the knowledgable investor, not so good for the newbie.