Quote from @Jon Q.:
Quote from @Hunter Reed:
Thomas, if you have 10k-20k in cash reserves then $150 cashflow is fine. If you have little to no cash reserves then the investment becomes significantly more risky. As you hold the property the property will appreciate overtime. If you can add value through a rehab this will increase cash flow. Over the years rents have typically increased by 1%-5% each year. Again, if you have solid reserves then you should defiantly pursue this investment.
“The property will appreciate over time”. DO NOT ASSUME THAT, especially in Pennsylvania that have markets that are not fast growing pop or job growth.
😆 Do you understand market cycles and where we are now in the market cycle?
Actually, I do understand the market cycle we are currently facing. The housing market is in a correction phase. Holding the property 5-10 years the property will defiantly appreciate in value. As the dollar continues to be inflated prices are bound to go up. Is that true for this year and maybe the next 2 years, no it is not. I would never buy in an area unless I had solid calculations that the property would appreciate in the coming years.
