Agree. I expect our end state to be something as follows:
RE - generate income
Index funds - diversity of assets, oh shits reserves if something goes sour
Cash on hand - emergence reserves, spending cushion for big ticket items/repairs
well current plan (and everything is subject to change) is to wipe all our current places and 1031 to a bigger complex. so by the time the clock runs out on our updates and repair bills start to mount, I am assuming we will be moving the portfolio.
@BA_lurker - Are these all 4 or more units? No duplexes I assume? Those would be ideal cities for me as well except replace San Mateo with maybe a Central SJ one
The sfh rentals as a business is a new phenomenon. It really didn’t exist before the 2008 crisis. Homeowners would always bid house up to make the cap rate too low. If you want high caps, meaning high profits, the mf is the way to go. I have made ten times my money on refis and cash flow on my Sacramento mf. Probably another 10 times equity left.
How many houses will return 20x. The recent phenomena will revert to norm. It is already happening.
BA rents are flat since 2015
"
When I asked about a well-read opinion piece by Don Lindsey, an influential landlord’s advocate in Alameda, that charged Sridhar with “acting out of panic” by quickly issuing the mass evictions last month, Sridhar lashed back. “He’s small-time. I don’t care about what he thinks.”
"
I think you overstated the quality of multi-family homes and understated the quality of SFHs. If you want high caps, you can always go to a lower end neighborhood, purchase condos, or do both. That is what I have done and so far it has worked out for me handsomely. I was able to achieve cap rates of over 10 for some of the condos and SFHs that I purchased in the East Bay. Not sure if you can say the same about multi-families…