In a volatile interest rate environment the cap rates have significant lag time in reflecting the interest rate at which the property can secure.

Speculation is always a key element as well, you cannot be afraid to go for the B/C neighborhood when the marketplace such as the bay area, is so volatile. 

In the volatile market we have today a fixed rate loan will carry a high rate if you can find one.

This is for the purpose of having a strong foundation that will minimize risk from any “Black Swan” event and will also increase your long term cashflow.When investing in real estate or business in general, one should always look to protecting the downside first before looking at the upside.Just my opinion 🤷‍♂️Regarding your $50,000 budget for turnkey.It will mostly be C or D class which I would advise against.High crime, lot of volatility, unemployed tenants and property management collects rents with a bullet proof vest and shot gun.On paper things look great, in real life they are much different.On the other hand, if you DIY in a markets like Ohio, Michigan and Indiana.You can definitely be into a B class asset for $50,000 purchase and rehab.Wishing you much success

I'd like fixed-income, but I really like the volatility of higher risk assets. 

Commercial real estate values, particularly in sector like self-storage is less prone to economic volatility, offering a more secure investment option.In fact, certain real estate classes like self-storage outperformed during the Great Recession.

I will share my "Most Expensive Lesson" in the comments.To kick things off, here are ten examples of expensive lessons or mistakes in real estate investing:Underestimated Repairs: The classic pitfall where the cost of repairs and renovations far exceeds initial estimates, impacting the overall budget and profitability.Tax Liens: Failing to account for or being unaware of existing tax liens on a property can result in unexpected financial burdens.Contractor Liens: Not settling payments or disputes with contractors can lead to liens against your property, complicating sales or refinancing.HOA Fines: Overlooking or violating Homeowners Association (HOA) rules can lead to significant fines and headaches.Bad Loan Products: Opting for loan products without fully understanding their terms can lead to unfavorable financial conditions, such as higher interest rates or unfavorable repayment terms.Ignoring Zoning Laws: Investing in a property without a clear understanding of local zoning laws may restrict its use, affecting your investment strategy.Overpaying for a Property: Lack of research or getting caught in a bidding war can result in paying much more than the property's worth.Neglecting Due Diligence: Skipping thorough inspections and background checks can uncover unpleasant surprises after the purchase is finalized.Poor Tenant Screening: Failing to properly screen tenants can lead to unpaid rent, property damage, and costly evictions.Underestimating Market Risk: Not considering market fluctuations can lead to investments that don't pay off as expected, especially in volatile or declining markets.We've all been there in one way or another, facing setbacks that seemed daunting at the time.

SO…let’s sink our teeth into something more meaty: Wild volatility in apartment housing supply.

A 25% fund could provide 25% return or 100% loss whereas a lower offering most likely is more risk averse and has less volatility.

What is your contingency plan if this trade war and stock market volatility trickles down into American real estate and property values drop 25 to 40% in the next few years?