Buy & Holders- Concerned About the Predicted 2017 downturn?

[Jay Helms]

Hello my fellow long-term buy & hold -ers.  The more I listen and study (from various sources local & national), the more I hear the experts talking about an upcoming downturn in the market. Some folks have sold off their assets while others are starting. 

Assuming you agree a market downturn is around the corner, regardless if your next opportunity hit all your criteria, are you planning to be in acquisition mode going into 2017? Or are you waiting for the blue light special ( a couple years from now) and plan to back the truck up?

Specifically want to hear from some folks who went thru 2006-2008 in acquisition mode. How did it work out and anything you would change going into the next downturn (regardless of when it happens)?

[Logan Turner]

Interesting discussion. Would love to hear some responses from people who went through it in 2006-2008.

I currently have a few long term buy and holds but I don't plan on selling. The reason being cash flow is king. Value varies. As long as you cash flow enough to absorb a decrease in rent, then just keep on trucking.

Now if I had 100 SFH's cash flowing only 100-200 / mo with current equity less than 25 percent. I'd be nervous. 50 percent equity at 100-200 I rest a lot easier. Or cash flow 300-600 a month with less than 25 percent equity, I'd be comfortable.

If market down turn occurs, rents may decrease or vacancy may increase. This can be argued but many claim this occurred in 2009-2013. So I'd just want to be prepared against it.

If you tell me my house is worth 50k or 500k, doesn't matter so much to me, if I'm not planning to sell it and it's putting 500 a month into my pocket.