All Forum Posts by: Darius Ogloza

I will also take the other side of that trade.   

This is the absolute best investment strategy for beginners.  My wife and I bought our first home in 1997, lived there long enough and below our means to get a down payment on our second (forever) home  without selling and now, 22 years later, have a nest egg that is pumping out cash and has appreciated wildly.  Good for you!   

I do not have a crystal ball.  However, there is an article in the San Jose Mercury today - the Bay Area contains 19% of California's population but just created 36% of all jobs in the state.   People who have jobs need to live somewhere and have money to pay rent.  Bumps and rough roads are an inevitable part of any investment plan.  Investing in areas where people are fleeing and/or can't find work is (to my mind) where the real risks lie.  

$60 monthly negative cash flow is not a lot when factored in soaking wet (it seems you have factored in all of the relevant intangibles such as vacancies and cap ex).  I do not know the San Antonio market but it seems to me getting a rent raise of $60 in the near future should not be too hard.  Do you have a superior alternative investment earmarked?  if not, I would hold tight and try to improve the numbers unless the tax loss if going to help you this year.  .

OP: what are the zip codes you are looking at?  That will tell you a lot about what you are seeing.  

Don't disagree with you, Jake.  Maintaining reasonable liquidity is the universal answer.  

To be fair, $315,000 in June 2006 dollars is the equivalent of about $400,000 in 2019 dollars.   This market has room to run is my sense.  

Recognizing that Las Vegas prices have skyrocketed in recent years, I have recently made two real estate bets there based on my perception that (i) prices still have not reached their 2006 peaks and (ii) Las Vegas is primed to grow with the exodus of Californians looking for lower prices and Rust Belt folks looking for economic opportunity at an "affordable" price.  In short, I believe there will naturally be ups and downs but that the U.S. southwest in general and Las Vegas in particular is primed for further growth (i.e. rental growth and price appreciation).  Just my two cents.  

The house is likely in a war zone.  Locals know this.  Out-of-state investor who do not do their homework do not.   

There are no "hard & fast" rules.  Be aware that very, very few people in this world will hand you a valuable asset or cash unless you have something of value to exchange for it.