I’m sure RE investors in 2008 and 2009 were stressed. I think most of us here have rose-colored glasses, since most or all of our RE investing is after the great recession in one of the greatest RE bull markets of all-time. We’ve had a long bull market in stocks too. It’s been an amazing time for people with capital to build wealth.
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You forgot about yourself. FanTASTic pay! Triple wins!
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Curiosity is what moves us ahead.
Texas property for South Bay property?
Hers in Walnut Creek right?
Not possible for me to do 1 for 1 exchange Austin RE with South Bay one.
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Replying to @manch’s comments about tech being a big part of the economy - In addition to the masses investing in tech stocks, another big factor at play is the number of tech landlords and the scale at which they operate.
Thousands of FAANG employees are landlords - and a significant chunk own RE in states outside the bay area. We are talking about each RE portfolio being worth >500k here. I know of some engineers whose landlord income approaches their individual tech income. A big % of these purchases are leveraged. So the next time tech drops, RE will take a hit and not just in the bay area.
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Where? Obviously Texas, Arizona, Nevada and Washington states. Where else?
Flyover states, Kansas, Ohio, Atlanta.
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A tech recession does not mean a recession in Kansas. Doesn’t matter when the landlord lives, only the tenant matters.
But I have not heard that tech workers invest RE in flyover states. Maybe they were from there and were just more familiar with those locations
Actually I bet way more techies buy RE in flyover states than locally. The orthodox of RE investing is you buy cashflow. If you go on sites like BiggerPocket lots of people preach cashflow investing. If you say you like appreciation they look at you like you are the biggest joke in town. They don’t have the benefit of being yelled at by our @Elt1 here. They are missing out big time!
So they collect something like $200 a door and pat themselves on the back.
Managing 50 doors at $200/door a month sounds like a lot of work. Can’t be a side hustle.
What I am I yelling about? Help me out I forget…
Aren’t you the one who constantly tell people NOT to buy in Texas?
Yeah. Mainly just to piss off Hanera. But Texas is probably the best of the flyover states. Haneras caps seem low
For Texas…
I do remember 25 caps in Dallas.
Only three things matter in RE location location location.
High cash flow means high headaches.
I recommend a balance. Some high caps and some high appreciation. Hit the jackpot in Tahoe with both. Almost as good as Sacramento was in 1999.
I think long term, sfhs are not as good as multi family for ultimate ROI
The 2009 depression created a unique opportunity for sfhs appreciation. I think returns will revert to the long term trend. It is really hard to find deals in the BA… Hence all the stock talk on the forum…
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Like Buffett said, it’s better to pay a fair price for good asset, instead of low price for a lousy one.
Rent will only go higher in prime Bay Area. It may need to level off for some time now after the rapid ramp up the last few years. But it won’t be long before it will go up again. Economy is on fire and NIMBY’s here won’t ever allow enough housing to be built.
I think the best thing about BA is that tenants tend to be pretty low maintenance. You rent to quality, high income people and they are most likely reasonable and responsible people. I like tenants like these.
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That’s my experience thus far as well. You don’t get the best cash on cash return in the BA, but you take the good and the bad.
I used to be on a Memphis guy’s mailing list. Houses sell for 40k and rent for 650. You can buy 10 or 20 and go FIRE.
@BAGB There are entire forums inside of FAANG where people discuss their investments in flyover states.
I agree with @elt1 about balance in the portfolio which is what I am trying to achieve but all you people here have made it incredibly hard to find even decent appreciation deals. So most of my appreciation is happening outside the US.
Wow, which country has good appreciation?