Nearing point where it makes no sense to buy more rentals

[Jack B.]

I've considered selling some rentals and buying two rentals with the money from each. I did that with one rental earlier this year. But with the market likely having only a few years to go before another correction, there will soon be a cutoff point where if I buy rentals after that, I likely won't be able to hold long enough to make any money, accounting for transaction costs buying and selling. Even with the appreciation during those few years, I'll likely just break even.

As much as I would have liked to keep buying another house every year or so, I guess I'm getting to the point where I'll just have to pool money for buying at bargain basement prices again.

Is anyone else thinking the same thing? It's not about predicting the market so much as not taking on too much risk. Sooner or later this market will go through the cycle again, and nobody ever went broke taking a profit and reducing risk.

[Anthony Dooley]

I can only say what I would do personally if I were you. I would sell everything you have in Seattle now. Then either wait for the market to crash again, as you stated it eventually will, and buy at a discount at the bottom of the cycle. Or I would find another market to buy where you can get more property and a higher ROI.

Not only are prices inflated due to the tech sector, the state and  local government policies are geared toward political emotions, not economics. This may get them votes, but unless mathematics work differently there, it will have an adverse effect on the  economy