A reminder why buying for appreciation alone is dangerous

[Jack B.]

http://www.businessinsider.com/josh-altman-learned...

The Altman brothers bought properties they couldn't afford but were making big money on, rolling the proceeds into bigger and bigger properties...until the market tanked in 2007 and they got stuck with a house they couldn't sell and couldn't afford.

Super glad that although I invest in an equity market, I bought properties I could afford with 20% down and are all very much cash flow positive.

[Jay Hinrichs]

@Jack B.  I can 1000% assure you that thousands upon thousands of buy and hold investors lost their properties.

Espcially Vegas FLA and AZ  along with a good chunk in central CA and the inland empire.

As stated we were not hit hard in the rental area here in the NW..

And of course not if the properties were cash flow positive.. unless they just ripped rents and walked for other reasons like the bad sub too buyers.

I am talking about markets were you had a nice 4 plex running along then in 08 you had NO tenants or you had big multi with 80% occ was break even and OCC went to 50% and you lost it.

Yes this happened were do you think all the foreclsoures came from ?  50% or more came from failed landlords.

Hell I was a lender then and I took back 200 plus homes that were all rentals were the landlord failed for one reason or another.

but it was defiantly in foreclosure clusters was not in all areas.. But when we post on BP which is nationwide and think that cash flow buy and hold is immune from failure that simply Is not true .