Investor · Holmdel, NJ · Member since 2013 · 29 posts · 5 votes
Just reading an article today in the wsj: https://www.wsj.com/articles/u-s-existing-home-sales-dropped-in-september-1539957950?emailToken=a8fc719ae9f6d54df13e655f7c48f09aqvJ1ILIMG5gL0mjK/c26HRAAXnV3Z8zIp/E42QWlffFMFivt9C5SLsTdEe4Qk6z4dYlwrxnUGW3Wx7ucB+AuroB+wgxLcRN7EXeB2UfNz6M%3D&reflink=article_copyURL_share
I feel like this is a good thing for buy and holders but love your thoughts bp?
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Ken Lagana I firmly believe its always a good time to buy RE. Your strategy has to change with the market. A good deal is a good deal regardless the market conditions. You have to weigh the upside and downside and compare that with your short term and long term goals. I buy 2-3 properties a month now in a sellers market and do well and I am waiting for the bust to hit us with hopeful expectations and poised to strike.
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Ken Lagana I firmly believe its always a good time to buy RE. Your strategy has to change with the market. A good deal is a good deal regardless the market conditions. You have to weigh the upside and downside and compare that with your short term and long term goals. I buy 2-3 properties a month now in a sellers market and do well and I am waiting for the bust to hit us with hopeful expectations and poised to strike.
Investor · Holmdel, NJ · Member since 2013 · 29 posts · 5 votes
7y
I agree it’s always about the deal. That said there are always underlying factors that make markets or environments better than other times. Just looking for group think on that. Appreciate the productive response
Palo Alto, CA · Member since 2017 · 230 posts · 200 votes
7y
There are always good deals on the market at any time, just more of them during down time. Even during up time, you might still buy and sell at the same time due to local market differences. For example, I just put an 35-unit building for sale last week in one city, but still active looking in another city.
With more signs of slow down, I am holding more and more cash now and more reluctant to jump into deals (unless deal too good to pass up). Cash is the king, especially during recession. To prepare for the next recession, I want to have cash to scoop up more properties, but at the same time also handle the inevitable loss of rents (with tenants losing their jobs). I make assumption that during recession, I will have negative cash flow for my rentals.
Investor · United States · Member since 2015 · 415 posts · 487 votes
7y
If your properties have fixed rates, you're in an area with steady rental demand, and you're cash flowing, I don't find there is much to fear about a downturn if you're doing buy and hold. You just keep the machine running and ride through it.
The only time the property's value matters is when you sell.
Palo Alto, CA · Member since 2017 · 230 posts · 200 votes
7y
You can still find tenants during down turn and there is always demand, but lower cash flow due to higher turn over (rent lost during turn), lost rent during eviction process, and additional turn over cost. I have found cash flow will be lower during down turn (not because of lack of tenants) for many areas.
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
7y
I can't wait for a downturn. Trying to find contractors that are worth anything is nearly impossible and they have no incentive to do a decent job... give me a slower market where they WANT the work and I'll be much happier... I don't care what the paper value of my properties are because I'm not selling.