When the Cycle changes and interest rates come down, the business guys can't make enough off of the Bonds, so, they are forced to put their money to work and start building.

Today i get a text from my tenant telling me that the rats ate through his harness cable on his motor cycle.

I also bought in Phoenix during the down cycle but I still keep my rents slightly below market.  

Also with real estate you don't have to sell your position to realize gains. also, as brent said, you can use leverage to buy much more in real estate (and at hilariously low interest rates) as for volatility in real estate, while accounting for normal debt cycles and some worse than intended negative consequences that happen infrequently and expectedly, real estate is extremely safe; depending on your approach.

@Mariela N-Tyler If you bought at $138K and it still may be worth $138k or less in 16 years, chances are it won't appreciate much more since we are nearing the height of real estate home prices across the country and gone through an entire market cycle.  

Also remember that markets run in cycles and the values will eventually rise again almost definitely even higher then they are now.  

I dont figure in capX as I "float that across the portfolio, and we try to cover big ticket items up front if possible, when doing the rehab. my suggestion is to be careful buying as the market is rising, I have backed off, the deals are harder to find to meet my needs, because buyer competition has picked up. it will cycle, so be patient and only buy Great deals!!! 

What I do, is about 5-6 months before any of my tenants leases are up, I reach out to see if they plan on staying another cycle, and if they say no, then I start showing it then, I don't wait for them to give me notice that they are moving out, by then it's too late. 

I would be very interested to hear from long time investors who have weathered the storms either crashing-and-burning and coming out stronger or simply getting through the cycle bruised but not battered.Having searched for a topic and thread like this one, I don't think there is one quite exploring this aspect of real estate investing where we lay bare all our failures but it would be incredibly instructive to us newbies to learn from those who have gone before and come out the other side weary and with scars to show from the battle.Hope you will find int in yourself to share so those of us who are new can learn.

If it is 25% down and 75% ltv then a lender might not do it.I agree that multifamily is overpriced in many markets and no way on Earth am I purchasing at this time in the cycle for those crazy low cap rates.