Thanks
1. I will spend 5K on domains totally. However, I will spend $ 2750 this month.
2. I am going to focus on reselling sites. This is the niches I am thinking about:
LLLL.coms and .orgs (borth LLL's and LLLL's), does that sound like good ones?
If you're going to focus on reselling domains, a good place to start is by purchasing:
* Premium LLLL.com's (lay off the XQOY.com-names)
* LLL.net/.org
* CCC.com (FL5.com , D8W.com etc. These are both affordable and you can make decent profit if you get good deals)
Try to look for bargains in these niches, pay attention to sales threads where these types of domains are sold and learn the prices. Learn why POOT.com sells for a higher amount than DPAT.com etc. Why DR5.COM sells for a higher amount than V9S.com etc. Why DPT.net is more valuable than ZYW.net etc.
You also need to learn how to appraise domain names you want to purchase or sell. Look up the domain name in Google with or without extension. Higher search engine frequency = higher value. Check monthly overture, previous development with archive.org, look at recent comparable sales at dnsaleprice.com , look at similar developed sites, are they in popular demand, do big companies stand behind similar domain names? All these factors are important when you want to determine the value of a domain name. And by determining the value of a domain name, you can find out how much you are willing to pay for a domain name. If you aren't certain that you will at least get your money back when you are selling the domain, then it's too expensive. If you are certain that you can get a domain name for $xxx or $x,xxx less than what comparable names sell for on today's market; - go for it!
Watch the market closely every day, as it's the only way you'll learn. Don't read outdated articles and buy e-books about "How to make $xx,xxx monthly by selling domain names". Those might have a few good tips you can take with you, but the most important thing is to watch the domain market closely and participate in it.