All Forum Posts by: Jasraj Singh

I disagree with some of the folks here. 

Talked on FB with a local investor around Atlanta, and she would buy up homes around new developments. It didn't happen overnight, but her properties would appreciate as demand for the new builds grew. 

I go into a purchase with "I buy at a discount and I get immediate equity. I DO NOT expect this house to appreciate $1, and I'll be fine."

Not to say you can't speculate. 

But you have to get some deep pockets and be ready to sit on your hands for a few years.

Nobody knows, and anyone who tells you they do is trying to sell you something.

I grappled with this for a long time. I was waiting for the perfect time to buy in. The truth is that there is no perfect time and it is possible that the market could crash tomorrow, or it could crash in 100 years.

Instead of trying to time a recession, evaluate whether or not something is a good price RIGHT NOW. If I find a property that cashflows well and is a good price, I don't care about the short-term fluctuations of the market. I'll buy it.

A good analogy would be going to the grocery store. If you want a steak, you're not going to wait and try and check the grocery store every day for the perfect price. You're going to buy a steak right now at a reasonable price, and if the steak goes on sale in the future, you buy as much as you can and stick it in the freezer. But you shouldn't wait forever for the perfect sale, because it may never come. 

Buy somewhere there is always going to be an employer or a university that won't go away.  Without those, you'll lose your tenant base and any potential profit.  This is all that really matters.  

@Jasraj Singh

Make sure you calculate all of your expenses. P&I, property taxes, insurance, maintenance, vacancy and capex. Check the market rates by using multiple sources such as; Zillow, Rentometer, Trulia, Hot Pads, apartments.com, MLS. Check the comps like a flip.

It looks like you are asking a very broad question, like "How do I invest in real estate?"  Try this:

https://www.biggerpockets.com/store/rental-property-investing-ultimate

Best way is to go and visit, other than that monitor the MLS closely and you'll see patterns emerge.

If you buy a property for $0 or as close to $0 as possible, you're almost guaranteed some appreciation. 

You can increase your odds/chances of property appreciation by buying at the right price and right time in the right location.  

Hi @Jasraj Singh.  I agree on cash flow as a priority.  Mark Twain reportedly said, "History doesn't really repeat itself... but it often rhymes" or something like that. A good indicator of the future is the past. If you want to find a property that will appreciate, try to buy when most are selling and in a panic.  That could be in about 2-3 years according to prior recessions. And try to buy in places that have massive swings (like FL, NV, AZ, and CA). And try to buy from sellers who are distressed (like banks and pre-foreclosures). Check out this graphic of Phoenix prices, but realize there are even better deals below the mean from the right sellers. And perhaps wilder swings in places like FL. 

@Jasraj Singh

I believe you should rely on cash flow first.  Without cash flow the value of the property is only on paper.  If your strategy is to buy rent and sell in three to five years then appreciation would be a very important factor.  I don’t like the appreciation game as the sole strategy as it’s to reliant on the current market.  The virus today may decrease the value of the property which would restrict your sell option at least for now.  If you bought at zero or negative cash flow and relied on appreciation you could get hurt.  I would be cautious on only relying on appreciation.

@Jasraj Singh I think cash flow is more of a defensive strategy - appreciation is where you can build some real wealth.

Homes naturally appreciate over time but, with that said, the amount of appreciation is very market & location based. Look at the home values over the years in the market you're interested in to get an idea. Talk to investors and agents in the area that you're looking at - they will be able to help you.