All Forum Posts by: Farooq K.

maybe some of us older guys remember when RE only appreciated a few points a year at best.... 

all you young bucks think these huge annual appreciation numbers are the norm - they are "not" 

if you cant get an annual return better than that of a t-bill or CD - run .... 

So negative cash flow is bad idea 

Quote from @Farooq K.:

$300 / sqft i bought my first house 2017 a 4300 sqft for $130 sqft and 2009 i bought very first starter home for $100/ sqft. I just feel like why would i spend $300/sqft.

Doesn’t mean I need to buy at 300 lol

I just noticed this question.....You do realize that prices go up over time, right? As the price on a 2000 SF house goes from $200k to $600k, there goes your SF $$cost from $100 SF to $300SF.....

Quote from @Farooq K.:

Read some books and learn how to analyze property. You'll learn how to tell when a property is a good investment. It's hard to find any right now, but the market will eventually change and you'll start seeing more deals.

Quote from @Farooq K.:

I am focused on increasing my earnings and savings. I'll invest when the market is more balanced.

Quote from @Armando Carrera:

Hi Farooq,

Ive also asked that myself. Im on the west valley and prices are still out of this world. 400k for a decent home that rents for $2200.

What Ive gathered is that these investors have/are in:

Syndicates 

Partnerships

Refi their appreciating home to purchase another one

Either way, a lot of these people own a small percentage of that home and/or are very over leveraged

Quote from @Farooq K.:

So what part of the market are we in now save part ?

Stop watching YouTube gurus. Most of them lie about what they've done, when they did it, and how they did it.

The time-proven method of building wealth is very simple: earn, save, invest.

There was a time when you could buy properties cheap, rent them for more than your expenses, and then rinse and repeat. Now it takes a lot more money, there's more competition, and your investment will earn less of a return.

I bought 33 units and 135 storage units in six years, and they earn me over $150,000 net per year. I haven't bought anything since 2022 because the numbers don't make sense. Some markets are good for building income, some are good for investing in real estate, andsome are good for saving. Read some books (preferably books written before the internet age), and apply the wisdom that has worked for thousands of years: earn, save, invest.

Quote from @Farooq K.:

Quote from @Joe Villeneuve:

Don't buy it.  Why are you putting the priority of buying another property ahead of why you are buying another property?

Cause I feel like I need to expand real estate to build wealth etc. isn’t that what we are all doing gather as much real estate as possible? Or do most people here only purchase if the cash flow is positive??

Arbitrarily expanding RE isn't the way to do it.  Negative CF is an added cost that defeats the purpose of buying RE.  Equity is only valuable if you can use it.  A 100% equity property is nothing more than a trophy, with the cost to buy it based on how much cash you put into it.  You own the property, but the property owns the equity.  They are not the same thing.

Quote from @Farooq K.:

Quote from @Russell Brazil:

Put a larger down payment 

Would you put 40% down? And is it better to be cash flow positive vs have more cash in hands ?

 I put 35% down on my last property to get to break even.

Put a larger down payment