BURL: Buy Utility, Rent Luxury

[Sam Dogen]

Howdy Folks,

So I've had this realization now that I've turned 40 and owned property for the past 15 years in San Francisco: Buy Utility, Rent Luxury.

I have NO desire to own multiple rental properties in an expensive city like SF, NYC, LA, SD, etc because it's a hassle, and also because the rent related to the selling price is so low! You can sell your rental property in a coastal city market like SF for 25-30X gross rent now. Meanwhile, you can reinvest the proceeds or invest new money in Midwest and Southern properties at under 10X annual gross rent.

[Eric A.]

I know you can't assume appreciation will happen every single year but these cities are pretty safe bets over the long term. I know several people that made life-changing money (600k+) in less than 7 years buying Brooklyn condos. That's why people buy if they can.