Real Estate Bubble

[beigledog]

Yes it was...I closed on the house I was referring to (a foreclosure) on December 1, 2011. Within 1-2 months things started to improve. I got a 20.1% cash on cash return on the house in 2015 (2016 is going to end a little lower), but that doesn't include price appreciation. In the 5 years since then, I'm pretty sure I could sell the house for 50% more than I paid for it. I actually had one of our regular renters ask us a couple months ago if I'd consider selling to them. I told them no because I need the diversification from my concentrated mining portfolio and I don't think I could ever find that good of a deal again.

Since then, we bought a short sale and another foreclosure in 2014 and 2015 respectively, and both are doing quite well (both are 15+% cash on cash returns.

I've always said though that the first house that we bought was the best financial decision I ever made.