Just wanted to gauge sentiment here. If you are planning on buying property on the next dip, what percentage decrease (I.E. 10%, 20% decrease from price highs) would you target for adding to more properties to your portfolio?
Also if a recession does come, do you think it’ll be significant (similar to 08 or worse) or a correction (<10%).
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
6y
Babek,
Your post reminds me of this saying "Life isn't about waiting for the storm to pass. It's about learning how to dance in the rain."
I have folks in my circle who stopped buying in 2013 and 2014 due to "prices are too high." Some are still waiting for the next recession. In the meantime, my multifamily biz partner and I have created $9M in equity from our acquisitions since 2013. This doesn't include the equity/money I have created with my flip and 1-4 unit partners. Yes, all deals are in the Bay Area.
Learn to play the game well while learn to minimize your risk. I've been "living" for over a decade without a W2. Our destiny is determined our decisions. We can't live life waiting. Our time on this earth is limited so keep exchanging it for money is not the best use of our time. You're more than welcome to keep waiting.
Rental Property Investor · Plymouth MA · Member since 2019 · 41 posts · 12 votes
6y
@Babek Sandhar
Waiting for the “ideal” market conditions can leave you paralyzed and miss many great opportunities.
Here’s the deal, you need to hedge yourself in case market conditions get turbulent. But and hold on a cash flowing property is ideal and rents typically go up during a recession as many folks are unable to afford housing at that point.
If we do hit a recession, be ready to pull that trigger! Then you can flip and rent to your hearts content.
The silver lining here is trying to time the market is never going to be a good idea.
Ahhhh what a coincidence! Perhaps the corona virus is a catalyst for a recession. This will be quite interesting. I am keeping my eye on key levels for the SP500. Right now the parabolic move up looks to be over. I’ll be looking at the 2500 level over the coming weeks to see if we break that. A break there would confirm this is going A LOT lower and would be confirmation this is a bear market.