Real Estate Bubble

[dickmilde]

It's much easier when the quality of the properties is higher... The return is less but you don't have to put up with getting calls at all hours of the night. Also, you don't have to go out and collect rent every month. In the long run I find that it works much better for me to be a real estate investor first and then look for good tenants to help me pay for the properties. It's like investing in "blue chip" stocks vs bulletin board or pink sheet stuff. You will find that the quality level of the properties that you offer will attract a comparable quality level of tenants.

Of course the real estate environment has changed considerably... It looks like it will be a while before we will see the value gains that I have enjoyed over the years so investing for cash flow is a serious consideration right now. In years past I always received part of my gains via rising property values... as we all know that has changed. I am very fortunate in that in my area we are down only 3.5% to 8% from the peak levels... depending on specific community... so it seems we will survive this brutal market. There are some really good quality properties available... So many people made poor real estate choices and now have to let them go at fire sale levels... These lower prices improve the cash flow since the rents are holding up very well. In my area rents have remained steady to slightly firming, and best of all we are 100% occupied.

Here is another post re my property selections...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66945411

Good luck with your real estate!