Property is constantly physically deteriorating.

In 30 years, the house will deteriorate and depreciate to a very low value, whereas the land underneath may appreciate if it's in the bay area.New investors really need to figure this out.Originally posted by @David Freeman:@David Song That is ideal (I'm from the Bay Area) but I can't find a sub $250K house for my first property within a 1 hour drive to the city, unless it's a wreck with a lot of work.

@Joseph Schommer there is most definitely no perfect property, and all properties are constantly deteriorating.

The dollar is reaching new 4 months lol, which is good for the free world.Now Freddie Mac suggested mortgage interest to be 6.8 in 2023, that's pretty conservative.What does it mean:- The Fed already prevented any crashes from happening, they don't see much deterioration in Financial sector.

Also the thing you will run into if you restore a property that has been deteriorating for a while is alot of the lead paint got into the dirt around the house and the trim on the window so that needs to be replaced too. 

In either situation, you generally experience a deteriorating situation at the condominium association.

We recommend it be evaluated by a qualified framing contractor for safety.The rear walk to the garage is heavily deteriorated and uneven and presents a tripping hazard.GARAGEThere is biological growth on the surfaces of the walls and roof decking in the garage.The top plate on the wall on the South rear side has rot/deterioration present.There are large gaps between the garage foundation block visible from the interior and mortar gaps visible on the exterior.

This includes low price per units, significantly below market rents, ADU potential, soft story and mismanaged/deteriorating properties.The properties could easily absorb 20% rent declines.

Granted that tbill will deteriorate as rates change at some point in 2024, it's possible that 6% isn't achieved.

The deterioration to my furniture is definitely a factor that needs to be accounted for.