What Needs To Be Said About Appreciation

In This Article

Since I am on the ground in working class neighborhoods, I always try to find out the story of how the neighborhood became so distressed with low prices.  I always find out that these houses used to be in great neighborhoods 20, 30, 40 years ago – but when the jobs left, the neighborhoods began to reflect that economic decline.

I have some words of caution, and some words of hope, for those whose entire real estate investing strategy relies on appreciation, as well as tips for what to look out for to avoid these errors that would otherwise take 20-30 years to find out. For example, “single industry areas” are susceptible, and with the future changing rapidly in an economic downward direction – caution and heads up should be used.

Check out this video for more information!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.