All Forum Posts by: Walt Payne

this sounds exactly like the kind of deal you should look for. Enough to keep it off MLS but nothing serious.

I have been mulling over a potential strategy to cover both philosophies. I see the economy going down the tubes in the next few years, but what form it will take is unclear. I am thinking of isolating a number of solid income producers in one entity, and having them mostly debt free. Then use another entity to do more traditional investing. Nothing drastic but go for reasonable growth. I am not rich by any means, but can afford to do it this way. I am curious what others think of this idea.

@Edwin E. And THAT is exactly the issue ... It is your debt when you have to pay it, which is why leverage is good in moderation but a potential killer under the wrong circumstances.

@Amit M. I mostly agree with what you said. But even with good management it is speculation, just less risky than just anybody, in just any situation relying on it. How many went broke during the crash who THOUGHT they were managing appreciation? Appreciation should be the icing on the cake. And yes, I suspect you are not depending on it for security, just overall profit. But it is not something I would bet on. And yes, 20 years ago I probably would have, so I am not criticizing. I am just saying it is not a good thing for everyone, in every situation to assume will happen. I am close to retirement so cash flow is a serious consideration.

And like you with appreciation, I feel I can evaluate the factors involved in the type of investments I make to get optimal income with good protection against the economy. And yes, I buy properties with appreciation in mind, which is why I stay out of low-end neighborhoods. I just don't depend on it happening for income. If it happens, it is extra income above what I am shooting for.

I think the important thing is knowing your market, the right property types for you, and the right strategies to get you where you want to go.

You are absolutely correct about both observations. Not easy to do from my phone, but I can see where it makes it clearer.

In light of the area where I am currently investing, it is interesting to see people mention investing in high end properties, lol. I think areas like NYC, Florida Coast, Cali Coast, and a few others have a class of property more akin to Ultra high end. I am not talking the occasional property like most areas have. I mean the fact that $1M properties are absolute slums in some beach communities, and $25M would be the norm. I know I sure can't play in that game (yet?). But there are a whole lot of $500K-$1M properties, which would be what I consider high end. I still can't play in that game yet either, but at least that one should happen in a few years.

@Carlos M. type "@?" without the quotes, then look down at the bottom and you will see the list of those participating in the thread, select the one you want to mention.

I grew up in the Collegeville area back when the nearest grocery store was in Trooper, 30 mins away. Now the traffic there is as bad as Atlanta rush hour.

I have not invested there for a few years, and that was personal residences that I bought with a dual purpose. I was mostly busy living life. Now I am starting to invest and hoping to get into it big time.

@Carlos M. I am just expanding in florida but so far so good. Rural market that has been stable even with the crash, though there are good REO buys available sometimes.

My experience was working for a guy who made millions when the Montgomery County, PA courthouse was built in a slum area. He bought a block of houses for almost nothing, and turned them into law offices.

I did a few of my own in West Philly and Overbrook. The last one was one nobody wanted because of problems. Paid $275k and put about $50k and a lot of hours into it, but sold it for $650k when I moved to Maryland.

@Carlos M. Midgrade, working class works best for me based on my needs and the market I invest in. But if you know your market, low end can definitely work.