I have some that have 7 to 10 year horizons and some still that operate in perpetuity. 

The reason is because your investment horizons is likely 5-7 years, and you can get cheaper financing with an ARM that will improve your cashflow and you won't have to worry about interest rate risk until later on when you decide to sell.

Maybe you have a very long term investment horizon, so you will buy properties that don't make as much sense short term but have incredible profit potential long term.

As for California specifically, you'll still probably see appreciation even if there is a "crash" as long as your time horizon is 10+ years.

All that said even assuming the long-term rates will rise, the cap rates are a function of the local economy showing by how much you anticipate being able to raise your rents over your holding horizon to meet your IRR target, that is why an urban high-rise apartment building in St.

Hospitals, colleges, recreation opportunities or some sort of industry all help.But a lot of this depends on your time horizon.

So the question is if one wans to go the leveraged route then they really need to have a long term horizon of say 7 years or so ?

@Steve Vaughan  If Meghan is worried then she should cash out.. nothing wrong with that.Others play the long game it all cycles.. so nothing wrong with that as well.depends on your event horizon . 

Recently attended a great seminar hosted by the #1 commercial real estate platform in the country. The focus was on Multi-Fam Outlook Nationally and in the Boston Market. Because I know the Boston Market, I was able t...

I do this for a five year horizon.