Their sheets had market appreciation set a 0% and they talked about it as being great and something you could be reasonably certain of only if you hold the asset for a full market cycle.

But in my view the point of long term rental is to "seat on" a low risk property which we can "cash in" just about anytime even during a low economic cycle and reword ourselves for our efforts times..

Sometimes if the market gets overheated where you are at it's time to take a step back rather than buy a marginal deal for the SAKE of buying something.At that point you might want to buy in other markets where the cycle is better or build up capital while waiting for the right property in your market.

The corvette and cycle I mention are luxuries and hopefully that point was made are they necessary absolutely not.

If you don’t cycle it though, you will eventually tap out the HELOC and be looking for capital again.During the interest only period, the payments on a HELOC are usually very reasonable.

Hi all,Does anyone know of a book that would help in understanding how the RE market cycle works?

Just make sure you don't have any leaky faucets or running toilets as if your meter is continually running for two payment cycles, you lose the guarantee.   

I am sure not all homes are like this.. but for me Its more than theme its reality  in the long run your deal will boil down to PM and tenants  if you can keep turn over to a absolute minimum and you have tenants that are very kind to your property you should do pretty well. that price point and rent in Dallas should get you decent folks in both respects.I don't subscribe to the rent appreciation theory I think rents are topping.. and people are going to drop back into buying houses when house payments are lower than rent... its a cycle that's for sure... but 1300 a month even in Texas will buy a nicer home with an fha loan that they are renting from you... at some point this is going to turn in my mind.

The era of interest rate cycles is over, and rates won't be above 5% in our lifetime.

@Ross Sumner you have to figure out the exit strategy and model the financial performance over the life cycle of the investment and project the exit value and all of the cash flows to the investors including periodic cash flow from operations and capital events such as refinancing and sale.