Manch mantra, always buy, never sell…Pretty much has worked in Cali since 1849…works for me
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I meant cost-averaging in a loose sense: I will buy whenever I am ready. I don’t have a fixed budget and will buy whatever makes sense cash-flow wise. I don’t want to go too negative on cashflow. That makes it hard to play defense. I don’t mind being a little bit negative. Some of my past buys were like that initially, but rent will go up and mortgage won’t. So in the end cash flow will always catch up.
It’s different from margins in stock market. We don’t have margin calls in real estate. Even if I am underwater I won’t feel a thing. I won’t lose the houses if I plan my defense game well. I suppose if rent suddenly dropped 20% across the board from the Valley to North Bay to Sac to Central Valley I will be in deep sh*t but the likelihood of that happening is pretty darn low. We are talking about a huge swath of Northern California… That’s like the nuclear winter scenario and I’ll be much more worried about getting food on my table and shooting looters from my roof. 
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You guys should start putting these quotes somewhere for the “Legends of Bay Area Wealth Builders” book.
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If 2% growth is good enough for Buffet…good enough for me.
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My other favorite elt1 quote is “stop whining and start winning”. Any time someone complains about bay area regulations, prop 13, etc – just tell them to “stop whining and start winning”. Whining is not going to repeal prop 13. Just lever up, lock in that property tax value, and win 
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