@David Faulkner really appreciate your thoughts here. I especially agree with your last take, I've never seen it put like that, but I like the "quick nickel, slow dime and really slow dollar" analogy. That's my preferred long-term strategy as well, rental properties. I primarily want to learn the flipping process -- finding discounted property, planning, renovating, managing, exiting -- as a means to building a portfolio of value-added rentals.
When I say I'm worried about the market, I should probably clarify: in the long-run, I'm really not worried at all. In the short-term, using Orange County as an example, I believe we're at/near 2007 peak levels again after adjusting for inflation. I constantly remind myself that "you'll never buy at the bottom and you'll never sell at the top," but I can't help but think we're much closer to the top than we are to the bottom. And I'd rather be ready with capital to invest heavily when greater opportunities present themselves again. When that is, I really don't know, but I'd think within the next 3-5 years.
In the meantime, I don't want to simply throw my hands up and do nothing. I think you bring up an interesting point, if you're somewhat worried about the market, short-term flips could be a way to go. I still think I'd rather find flip-type properties and utilize a rental exit versus a sale. I'm not sure if the price-to-rent numbers will work well enough still though, save for the best of deals.
Your thoughts? I'd love to grab coffee sometime and discuss further if you're available!
Cheers,
Aaron
