All Forum Posts by: Lilia Matlov

Depends on your goals and the current market. There are opportunities out there but some strategies are risky. 

1 - Airbnb (STR) comes to mind - very competitive, very saturated and becoming highly regulated.

2 - Most STRs are transitioning to MTR so that market will be saturated soon if it isn't already.

3 - Insurance crisis in florida is getting bad so those costs will eat up cashflow and short term appreciation. Also Condos are dealing with high special assessments. I would say the real estate market in Florida is Risky.

4 - If you follow the navigation and growth trends you might be able to get ahead of the next opportunity wave. I have heard good things about Ohio, Indiana, etc.

5 - Due to high interest rates flipping has become highly risky and most businesses have dried up.

6 - Co-living and Assisted living seems to be popular right now.

So - really depends on your market, your strategy, and your timeline. But, opportunities are out there. It's always good to invest when there is worry and uncertainty.

Hi @V.G Jason and Lilia,
I came across this thread while digging into discussions about real estate strategies, and I couldn’t agree more with the focus on long-term thinking. Lilia’s breakdown of what to consider before investing is something I wish I’d read when I started.

To add some color, I had a client a few years ago who purchased a duplex in Austin with a plan to hold for 12+ years. His focus was on location, tenant demand, and ensuring the property could handle at least a 1.25 DSCR even in a downturn. It wasn't teh flashiest deal, but it's been rock-solid through rising rates and market swings. By prioritizing fundamentals over chasing ROI benchmarks, he's now sitting on an asset that's appreciated 30% and maintained strong cash flow.

Personally, I once miscalculated reserves on a triplex I bought early in my career. It was a 1970s property, and when the plumbing needed an overhaul, I found myself scrambling to cover the costs. That experience taught me to always overestimate CapEx and vacancy buffers... it's much easier to sleep at night when you've got those cushions in place.

From what I’ve read in Bloomberg, these challenges aren’t unique, especially with rising rates. How are you all adapting your strategies with the current market changes, like higher interest rates or evolving tenant demand?

 Quality over quantity is a ridiculously underrated point on here, despite some of us stating this ad nauseum. 

If you're investing in real estate, ask yourself can you hold this a minimum of 8 years, ideally 12, optimally north of 20? This is the through the ups & downs. If so, invest.

Then, ask yourself does this property provide the characteristics you need for it to give you your return-- location, rental demand, buying demand, physical structure, etc. Not it needs to be X% CoC or ROI, no short-term metrics. Focus on the physical aspect of physical assets. If so, invest.

Then ask yourself if you're financially fit; can afford this property to make it 1.25 DSCR and have significant reserves for vacancy, capex, lead times, etc. If so, invest.

It's not let me find some deal for me-- the lowest hanging fruit. It's about making the right deal for you. Not sure the columbus folks will like to hear this, but it is what it is.