Why is it relavant to you then?
Was thinking in general. However, given that I am so old, may not have to the time to wait till the next bottom if it is taking so long to peak, by the time it peaks, it will take a long time to bottom, … may already return to the source. However, if the timeframe is shorter, I am able to do something before the next up.
When Most of yours is in cash (no mortgage), and cash flow is enough to cover all your expenses, there is no need to sell anything. By selling at peak (market timing), what will you do with such money (after paying hefty tax)? You will need to invest either in real estate or stocks or somewhere else. It is better to keep as such (and pay no tax on capital gain) and enjoy the cash flow.
And not suffer through a still rising market
Not planning to sell anything. Am hoping for a bottom before returning to the source, to buy more using leverage such as heloc, cashout refinancing, etc, from the houses.
You can not cash out when market in deep trouble as no lender will provide you cashout refi and even if someone gives, it may be at peak rate and lowest appraisal.
You should cash out refi now or previously (6 - 12 months before), but should not wait further as the mortgage rate is low now (than in future). The question is how will you invest positively until real estate falls, may be one or two years or beyond?
Sound like chase it and hope for the best.
The Tahoe “cabins” I have bought since 2013 have been amazing investments. Started out as 5 caps some are now 8 caps and have averaged 10% appreciation. 15-20% IRR average min.
I meant the cabins people buy as vacation homes. Buying something that’s only used a few days a year is a vast waste of money.
I recall vaguely that at the peak of dotcom, many techies bought vacation homes in death valley, paying million dollar for a hut with no water, no internet access, no phone?, … can’t remember. So now we have to wait for elt1 to report that hut in Lake Tahoe is going for $1million.
Vrbo and airbnb have made them profitable.
I have a vacation rental in Stateline, Nevada that is an 8cap and is empty 165 days a year.
So you can get a place to stay almost half the time and an 8% return.
Unfortunately haters want to eliminate VHRs in South Lake Tahoe. But fortunately my Nevada property will benefit from this naked communistic movement
How many days a year can you Airbnb out your cabin?
No restrictions if licensed in city of South Lake Tahoe. But there is a moratorium on new licenses. In Nevada no restrictions. In reality there is little demand mid week and off season. Most places are only booked 100-150 days a year.
Are there still opportunities on the Nevada side to do AirBNB/VRBOs and make a decent return?
I just went into contract selling mine…7cap at sales price.Rented 200 days a year…Still 165 days for personal use…
He’s a flipper at heart!
He takes old or fixer apartment, makes it nice and also rent it, then sell it for profit. He is doing flips for max returns and repeats the same process.
8 cap for him not for you. The denominator is purchase price😶
10 cap for me. But I want acreage in Placerville. My Nevada vacation property stays empty 165 days a year. Made a good profit tax free if I exchange. Plus I get to start depreciation again.