Updated over 5 years ago on . Most recent reply
How To Crack $1M - In The Year 2020
Is it just me or everyone playing it safe? Recently I’ve been catch a ton of flack on this forum for suggesting things like:
1) Maximizing leverage while carrying hefty reserves.
2) Buying for appreciation in western markets.
3) Buying properties that barely cash flow (for appreciation) and following each up with a STR to supplement cash flow.
I feel like the general vibe is hesitation. Market uncertainty. Fear. These suggestions are being received as total noob blabbering.
While I’m no expert, I do work for one of the top multifamily developers in Arizona and I have first hand knowledge that developers are NOT playing a scared game right now.
Why is this nontraditional route receiving so much push back?!?
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Ive always found these threads about appreciation vs cashflow to be very entertaining. Personally, i always invested for appreciation over cashflow. I never minded putting a bigger down payment to offset short term negative cashflow... its always worked out for me.
When I started investing in RE over 16years ago in my home town Eagle Rock ( Los Angeles), a retired gentleman (who owned over 50+ properties ) told me that “real estate values will always double every 10yrs”. This idea was something that stuck with me and I still believed in that idea to this day. The crash pf ‘08 caused a huge dip in the value... however, it bounced back pretty quickly. Some of my assets even tripled in value since I purchased... and all are cash-flowing significantly now.
Every market is different. In Los Angeles, there’s a huge housing crisis. My rental units did amazingly well during the worse recession rent-wise....(I was actually even raising rents during the recession because housing demand was so high). So for me, it’s a no brainer to keep buying even if it is at the top of the market. I am more actively purchasing and investing more lately than I have ever had the last 10yrs.