All Forum Posts by: Account Closed

Try to look at these concerns as opportunities:  if people start pulling out of these markets due to concerns about what may happen 50 years from now, that may present you some great opportunities to buy. Their irrational concerns about what 'could' happen decades from now may present a compelling value prop.

As others have said, humans adapt...they also innovate. New solutions to problems are always made. Think of the turn of the 20th century:  cities with increasing population like NYC and London had no place to store manure, which created a crisis affecting public health. No one knew what to do and the future looked grim. Then the car was invented and the problem was solved. Humans adapt!

Just my opinion, so please take this with a grain of salt:  I'm not a fan at all of 401k's and real estate is my far preferred vehicle. That said, I do max out my contribution to my employer's 401k which matches up to 6%. I'm not set to invest in any particular funds (which is great because they're tanking) - it's merely building a cash basis. Plan is to withdraw and take the 10% penalty and redirect toward real estate when an opportunity surfaces.

You should read The Buy and Hold Real Estate Strategy by David Schumacher. It's an older book, but the principles and strategies presented are spot on and relevant to today. It's worth its weight in gold. Good luck!

I dont see what the hype is for DC. They're going to do exactly what every large company does that moves into town: poach existing talent.

Seek out older, experienced mentors too (not just REI people!). You have a drive to move forward, but you can get even farther if you learn from their journeys and avoid their mistakes.

Love your enthusiam. Hit it hard these next 10 years as they will be very impactful upon the course of your life.

I can't speak on California since I don't invest or live there, but what I will say is that there are numerous sub-markets in the US that need to be examined based on their unique value propositions. Sure there could eventually be a decrease in home prices if rates increase, but that will certainly be felt stronger in expensive markets - much less so for reasonable markets. Why not look elsewhere at markets like St Louis or Jackson? Also, there is a cost to waiting. If there is eventually a dip in the market, you might find prices more appealing (if they even do decrease enough), but will you be able to get a loan if banks clam up?

Not wanting to tell you what to do, but I think it's good to 'make hay while the sun shines' now while we can.

I'm in agreement with Russel re: cap rates.

I wouldn't make that metric a central part of your investment criteria. Cap rates are not an optimal means toward evaluating a potential investment (IRR is much better). What are your goals? Are you looking to park a lot of money away for several years in a safe asset? Are you looking to build supplemental income? What's your risk tolerance?

I will qualify my prior response with a note that NoVA isn't necessarily a bad investment - people wouldn't be investing here if it wasn't (and I know many who have and have done very well).  Personally, I prefer to put my dollars in other markets, but if the right opportunity and circumstance came along then I certainly wouldn't disregard it. The barrier to entry here is very steep (too steep for me). If that barrier isn't present for you, then there can be some great options (again, depending on the our goals).

Hrmm. Cap rates are almost non existent here in NoVA for MF. IMO, you're way better off putting your money in another market. There might be some value in putting dollars toward SFR's in certain areas - especially if you can get military or gov't tenants.

From what I've seen, we are already feeling the effects of a weakening market, but it may be too soon to tell.

https://wtop.com/business-finance/2018/10/northern-virginias-housing-market-is-showing-signs-of-fatigue/

what was the scenario of the house?  Purchased via auction? Also, what work was done? Nice job. 

congrats!