In the meantime I am buying with a large discount to todays values (ignoring what they were at the top) and healthy cash flow.

Read about guidelines for healthy cashflow here:http://www.biggerpockets.com/forums/52/topics/18371-help-me-understand-this-deal-and-5-2-rule

Originally posted by Joshua Dorkin: By passive, I'm talking about someone who doesn't want to actively run a property (would rather hire management) or who has no interest in managing rehabs (though would consider investing in them).Passive investing is where my wife and I are at (well I'm at, my wife just likes seeing the proceeds ;) )We have a little over $500,000 we are working with and eventually intend to find a healthy split between managed rentals, and an investment vehicle my friend has owned and operated very successfully for the past 15 years.

If you can buy at 65-70% of ARV you should be able to pay hard money rates and make a healthy profit.

Rents are very healthy and prices are depressed.

Unfortunately he's getting old and his health is bad.

A healthy body compliments a strong mind.

Expenses (including 10% property management and 3% repairs) as 35.36% of gross income of $8400 leaving a seemingly healthy NOI of 64% as compared to 50%.

I tend to agree it's less of an economic decision but a feeling that home-ownership fosters healthy communities.

Even for this concern, though, the consideration is more complex than "buy when you're young and healthy because the rates will be higher if you wait and have some medical problem".