How do macro market cycles influence your investing approach?

[Tyler Dunlap]

Hi all, I am looking into some turnkey properties in midwestern markets that cash flow decently. This has lead me to wonder how long-time investors change their investing approach as the real estate market goes through its various cycles. Obviously it would be great to be buying depressed properties like in 2012, but that’s not the case now. Now, there are many indicators that we are nearing the end of a huge growth cycle in the real estate market. Turnkey properties now command a premium. Where SFH’s may have been 60k a few years ago, they are 90k now. Even so, there is still decent cash flow to be had. My question is this: in the grand scheme of things, my plan is to buy and hold for a very long time. In that case, does it matter if I pay 80k for a turnkey just to see the market take a modern downturn in a few years? What should my strategy be, to just buy cash flowing properties and if the market goes down continue to buy more properties for cheaper prices (similar to dollar cost averaging in equities)? Any wisdom from old timers and new investors alike is welcome!!

[Mike Dymski]

This old timer is redeploying some capital from value plays to cash flow plays (and always adding value).

I am also investing more with others now...sponsors who have full time staff dedicated to putting hundreds (or more) of opportunities through the pipeline.

Just pivoting with the market.