There's always risk in this stuff, but the more you decrease the risk the better.

Year over year, the median SFH price in Denver is up 14% from this time last year.11% -- the decrease in active SFH listings from this time last year.

If you buy in a location where prices and rents are increasing below the inflation rate, your only option will be to decrease your standard of living over time.

@Mitchell Mahnken - I do not own any mobile homes but I’ve learned some things about them through my RE readings and BP podcasts.Because they do not appreciate in value like a traditional home (they actually decrease in value) you would need to factor that into your math.When considering your exit strategy, how much would this sell for after 10 years, 20 years?

Reason being – a steady decrease in the population over the last 10 years.Some other important factors to consider before stepping into a market are job growth, median rent, and median income.

And more often than not clients want to  actually decrease the value of the land so they get more depreciable basis which they will later defer in the 1031.  

@Tony ThomasIf you get some tax benefits / decrease in tax burden - it may make more sense to close in 2021.In general, I like to close on the 6th of the month if the property is rented.

It also decreases the depreciation expense in future years, which increases taxable income in future years. 

If so, the quality of the low income tenants could be decreasing over time.

Those who also invested in out commercial property equity real estate fund should be able to offset any decrease in value of the note portfolio with increase in value with the equity portfolio.