I'm going to get some cash & financing (line of credit currently @ 3.5%) and buy ~ $500,000 of real estate. I'm going to fix and flip (3) properties and plan to make $25,000 on each of the properties if real estate stays where it is at. When I buy the 3 properties I'll be $500,000 long in real estate which I really don't want. I'm thinking of shorting $500,000 of something that tracks the real estate market, therefore I then take the market out of play and just concentrate on the flip. Can anyone recommend something I should short? Also is this a good idea? I'd prefer to a future contract so I don't have to pay interest vs an ETF which i'll have to pay an interest rate. Though I'll be short and will be paid interest on the short position I'm betting the difference will be 1%. If I hold the properties for 6mo. That'll cost me $2500 to hedge myself!