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All Forum Posts by: Mohamed Youssef

Mohamed Youssef has started 9 posts and replied 42 times.

Post: Recession-Resistant Property Types Worth Considering:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16
Quote from @Brian Burke:

I've seen mixed results from these asset classes over the last several market cycles.

MHPs do seem to have some resistance to recessions and some stability, in part due to the reasons you gave.  They do have some risks, however--such as big-ticket capital improvements like water/sewer systems and roadways.  This can be mitigated to some extent by thorough due diligence, but for long-term ownership you'll probably get hit with these eventually.  This can be especially painful when the cost of labor and materials is high--as is the case now.

Self Storage has seen rent declines in the last couple of years.  I'm not sure that this is recession-related because we haven't been in an recession (officially?).  I think it has more to do with over-building, which can be just as bad as a recession.

I agree with your thesis on medical office, however I've noticed a lot of doctor consolidation in my area with doctors either leaving the area due to high costs or partnering up with other doctors and/or larger medical groups.  Our class A medical office seems to be doing quite well but I see a lot of vacant B&C class medical office that wasn't vacant a few years ago.

My addition to this list is senior housing, specifically assisted living, memory care, and skilled nursing facilities.  I believe in it enough that I'm about to launch a fund for acquiring just that, and have ten assets in contract already.  This is a needs-based use, so it has recession resiliency, but many states also have development restrictions so you don't see the over-building problem like we've recently seen in self storage and multifamily.  The downside here is you need specific industry knowledge and relationships to make this strategy successful, so it's out of reach for a lot of sponsors.


 Thanks, Brian, for mentioning the capital improvements cost on the mobile homes. I agree with you on the senior living facilities, these places make a ton of money.

Post: Recession-Resistant Property Types Worth Considering:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16
Quote from @Andrew Syrios:

That's interesting about self storage, without having thought about it much I'd almost think it would be more vulnerable in a recession. But your logic makes sense.

I would be a bit nervous about mobile home parks just because they tend to be of a poorer demographic, who tend to be the ones most likely to be unable to pay when the recession takes a turn for the worse. But that is true about moving costs. Do you have any data on that by chance?


 Oh, I remember self-storage was booming during the 2008 recession because people were leaving properties or downsizing and needed a place to store their furniture and other stuff.

I can't find the data on the mobile home moving cost, but I remember it was a website I came across that was showing the average cost.

Post: Recession-Resistant Property Types Worth Considering:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16

With economic uncertainty making headlines again, I've been researching truly recession-resistant property types beyond the usual suspects.

  • - Mobile home parks continue to demonstrate remarkable stability. Unlike apartment tenants who might downsize during tough times, mobile home residents rarely move due to the $5-10K relocation cost of their homes. One investor in our network shared that their collections remained above 95% even during 2008-2009.
  • - Self-storage has evolved from being recession-resistant to actually benefiting during downturns. As people downsize housing, demand for storage increases. The operational simplicity (minimal staff, low maintenance) creates impressive cash flow protection.
  • - Medical office properties with long-term leases to healthcare systems offer another layer of protection. These tenants invest heavily in specialized buildouts and equipment, making them unlikely to relocate even when budgets tighten.

Less obvious: car washes. People still maintain vehicles during economic slowdowns but might switch from professional detailing to automated washes. Several express car wash chains have shown remarkable growth during previous contractions.

What recession-resistant properties are you considering for your portfolio? Is anyone having success with niche asset classes not mentioned here?

Post: Recession-Resistant Property Types Worth Considering:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16

With economic uncertainty making headlines again, I've been researching truly recession-resistant property types beyond the usual suspects.

  • - Mobile home parks continue to demonstrate remarkable stability. Unlike apartment tenants who might downsize during tough times, mobile home residents rarely move due to the $5-10K relocation cost of their homes. One investor in our network shared that their collections remained above 95% even during 2008-2009.
  • - Self-storage has evolved from being recession-resistant to actually benefiting during downturns. As people downsize housing, demand for storage increases. The operational simplicity (minimal staff, low maintenance) creates impressive cash flow protection.
  • - Medical office properties with long-term leases to healthcare systems offer another layer of protection. These tenants invest heavily in specialized buildouts and equipment, making them unlikely to relocate even when budgets tighten.

Less obvious: car washes. People still maintain vehicles during economic slowdowns but might switch from professional detailing to automated washes. Several express car wash chains have shown remarkable growth during previous contractions.

What recession-resistant properties are you considering for your portfolio? Is anyone having success with niche asset classes not mentioned here?

Post: Recession-Resistant Property Types Worth Considering:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16

With economic uncertainty making headlines again, I've been researching truly recession-resistant property types beyond the usual suspects.

  • - Mobile home parks continue to demonstrate remarkable stability. Unlike apartment tenants who might downsize during tough times, mobile home residents rarely move due to the $5-10K relocation cost of their homes. One investor in our network shared that their collections remained above 95% even during 2008-2009.
  • - Self-storage has evolved from being recession-resistant to actually benefiting during downturns. As people downsize housing, demand for storage increases. The operational simplicity (minimal staff, low maintenance) creates impressive cash flow protection.
  • - Medical office properties with long-term leases to healthcare systems offer another layer of protection. These tenants invest heavily in specialized buildouts and equipment, making them unlikely to relocate even when budgets tighten.

Less obvious: car washes. People still maintain vehicles during economic slowdowns but might switch from professional detailing to automated washes. Several express car wash chains have shown remarkable growth during previous contractions.

What recession-resistant properties are you considering for your portfolio? Is anyone having success with niche asset classes not mentioned here?

Post: Cost segregation studies - When they're worth it and when they're not:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16
Quote from @Patrick Albright:

Is cost segregation allowed on the property itself or only the assets within a house?  I have heard different things on this topic.


 The whole property, not including the land.

Post: Cost segregation studies - When they're worth it and when they're not:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16
Quote from @Chris Watson:

I had cost segs done on all my properties last year.  Due to them being in two primary locations the price was economical including the site visit.  Why all? 

1. It is cheaper to do all at once.

2. Just because it was done this past year doesn't mean I have to utilize it right away.

3. It gives my CPA several options when developing my tax filing strategy for each year depending on the current tax law environment.

4. I plan my tax strategy for +3 yrs out.  No need to worry about paying taxes if you plan properly. 

5. It also relieves the pressure to find "this year's" write off. I make acquisition or developments based on fundamentals not "needed write off/depreciation".


 It is a good idea to get them all done at once if they are all in the same vicinity.

Post: Cost segregation studies - When they're worth it and when they're not:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16

@Jon Martin @Tyler Divin

I feel DIY and remote cost seg. studies will be a red flag in case of an IRS audit. I honestly never recommend them to my clients and would prefer to go with a more reputable engineering firm that does site visits, documentation, and photos. They also provide support and back up their study in case of an audit. Just for peace of mind.

The benefit covers the cost anyway.

Post: Cost segregation studies - When they're worth it and when they're not:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16

@Jon Martin

That is a great price for a cost seg. study. Do they do the site visit or offer any audit support?

Post: Cost segregation studies - When they're worth it and when they're not:

Mohamed Youssef
Posted
  • Accountant
  • Brea, CA
  • Posts 44
  • Votes 16

@Michael Baum

Agree with you. Although, I heard rumors that Trump will bring the 100% bonus depreciation back in 2025, we will wait and see.


Also, some investors still think that regardless of the 100% bonus, accelerating deprection over 5 - 15 years is more beneficial than over 27.5 or 39 years.