Originally posted by @Jay Hinrichs:
Originally posted by @Marisa R.:
Originally posted by @Jim Chuong:
@Marisa R.congrats! Amazing story! I resonated with this because as a Canadian, this is exactly what I did in Phoenix! Buying detached houses for $50k and 2/2 condos for $30k! More power to you!
Great. Good on you
we got the timing right
Now we just find the next market that is rising
What do they say.....
Fortune favors the bold
Believe Canada market has softened???? Is this correct
the issue you have with so many US investors is they are feed this appreciation is gambling cash flow day one is the right way to do it.. when in fact its one way.. but not necessarily the best way . just look at all the arguments 5 years ago with SF BAy area investors and every one else.. well the SF investors killed it with appreciation .. were as cash flow is cash flow if the values never rise you need to have some scale.. other wise its just a slow way to build equity over time IE your tenants pay your house off.. the big wealth builders are forced appreciation or organice appreciation. you get of course by major remodel refurb.. and or getting ahead of the market.. researching were trends are going IE the move back into the urban core hip cool neighborhoods.. you take some risk sure.. and in the beginning there is not much or any cash flow but then when houses start selling to owner occ the game is on.. if SFR homes really never sell to owner occ they will just trundle along and the value will only be what another investor will pay for a given rental rate.. pop it into the BP calculator and that spits out the value.. which stays stagnet unless rents rise a ton.. which in many markets that simply does not happen rents stay pretty stable.. so for the blue collar type rental areas or towns.. that's the stability.. not much up but not much down so you need Doors.. and then to get doors U need ton of debt generally.. and that alone takes on risk of some sort.
Those who only talk about cashflow are the ones who buy lower Class/cost properties <$60k, that’ll take one generation (30 yrs) to throw off type of meaningful appreciation.
My last close on a turn-key Class A in a hot market was 12/12/18. Today, a model match just went up for 27.8% more. That’s in 7 months.
Would have to hold one of those middle of nowhere cashflow shacks for ~8 years and pray for no vacancies (and there always are) or big repairs to get those gains.
In 7 months I refi’d down over 1%, (cash-flowing $350/month), and my total vacancy time from purchase to tenant move-in = 4 whopping days. The property is 2,400 miles away from where I live.
