. When you self manage…
Beware gross pic.
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At least it wasn’t 
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That sums up this thread. I actually thought about selling a house I have in Tahoe keys that is currently empty. It is worth over 2x that I paid for. It’s hard to get good tenants because it’s expensive rent. But what would I do with the money? I had actually had a 1031 opportunity… But the fund I would exchange into is on hold. Nobody is looking forward to currently investing into a debt situation thanks to Powell. This $250m fund was planned with 50% debt. No high debt deals will happen now… Powells plan is to break the high flying economy. Once that happens rates will come down and deals can happen again. Until then desperate sellers are probably better off doing owner financing instead of 1031s.
I could just sell and pay the tax… But then I am guaranteed a 30% loss just from taxes. So I will hold on. Reduce the rent 10% and keep getting a great cap rate.
We muddled through the high mortgage rates of the 70s and 80s and we will again.
Basically don’t sell unless you have to. Then either drop your price or do owner financing. Charge 5% and your price will very attractive in a 7% market.
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Philanthropy. Invest in I-bonds.
The charity of your choice? I bonds are max $10k?
Or simply enjoy the sins of life. Get a foxy lady, buy a small yacht, travel the world.
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Sounds good. I will let you convince my wife.
Follow Bezos, Musk, Gates or Trump. They all upgrade their lady. 
. If you can afford it.
I am not worried about the cost… more worried about murder. Russians can be be vindictive. Besides done with traveling and boats. Like just being an old farmer… tending my own garden. I want to build my own Taj Mahal.
There’s no “high flying economy” for Powell to break. Just inflation. Marketwatch has a story about folks turning off their lights tonight because they can’t afford to put out candy.
The poor always suffer. The government will hurt them the most no matter what they do. But Powell literally wants to push interest rate to break RE and stocks. Could take out a country or two also. I think he wants to to it quickly. Even when Volcker destroyed the in 1981 the carnage was over in a year.
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Real estate has been a popular asset class as of late — perhaps because it’s a well-known hedge against inflation. As the price of raw materials and labor goes up, new properties are more expensive to build. And that drives up the price of existing real estate. Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income.
While poor old Americans e.g. @Jil sold out of RE.
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Inference: True, poor old Americans have intelligence enough to dump it at rich young Americans and keep cash waiting for stock bottom !
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“It may seem counterintuitive to have real estate on this list. When the Fed raises its benchmark interest rates, mortgage rates tend to go up as well, so shouldn’t that be bad for the real estate market?
While it’s true that mortgage payments have been on the rise, real estate has actually demonstrated its resilience in times of rising interest rates according to investment management company Invesco.
“Between 1978 and 2021 there were 10 distinct years where the Federal Funds rate increased,” Invesco says. “Within these 10 identified years, US private real estate outperformed equities and bonds seven times and US public real estate outperformed six times.”
The Fed is tightening its monetary policy to fight rampant inflation, and real estate happens to be a well-known hedge against inflation.
Why? Because as the price of raw materials and labor goes up, new properties are more expensive to build. And that drives up the price of existing real estate.
Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income.
But you don’t need to be a landlord to start investing in real estate. There are plenty of real estate investment trusts (REITs) as well as crowdfunding platforms that can get you started on becoming a real estate mogul.”
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BAC says RE is like 2008. Price/ rent is as high as in 2008 before the crisis.
I am beginning to think so. Cash is king. Be patient.
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10% is not good enough. Wait.
Transacted price is about 10-15% below ATH in Spring. iBuyer dropped more than 20% from their initial asking. Mortgage rate shooting up from 3% to 7%, price drop should be more than 30%. So wait.
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I am noticing in some Bay Area cities that RE prices actually started to tick back up after hitting low in August. Check Redfin trend in cities like Mountain View and Los Altos.
https://www.redfin.com/city/12739/CA/Mountain-View/housing-market
https://www.redfin.com/city/11018/CA/Los-Altos/housing-market
https://www.redfin.com/city/19457/CA/Sunnyvale/housing-market
Does this mean that August was the low, and now RE is back to the rising trend. Most cities in Bay Area are up since August or flat. Its weird but its hard data. Even the new listings suggest that prices have flatlined and no longer falling. Its weird.
Even San Jose is up since August: https://www.redfin.com/city/17420/CA/San-Jose/housing-market
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I notice that in CU too. However, no such observation for Austin.