The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: John Vosilla who wrote (284505)	10/18/2010 11:18:03 PM
From: tejek	Read Replies (1) of 306849

Still you can build enormous wealth tax free this next cycle in those low cost areas even if they modestly appreciate just based on cap rates in the teens and record low mortgage rates making you debt free within 12-15 years from just tenants paying off your mortgage. The huge problem is the tenant base relative to the bigger cities. Part of why I think it is much better to invest long term in a place like Tampa or even Atlanta or Houston without even factoring appreciation potential The problem with those three markets is they are surrounded by mostly flat land and build, build and build like there is no tomorrow. That makes for a terrible record for price appreciation over time. My cousin, an MD, owned a house in Tampa that took most of the decade to sell. Granted we know that doctors typically don't have a good relationship with real estate. <g> However, this became a form of water torture for him. He finally sold it in 1998 and made no money on the deal after owning it for most of the 90s. I like good growth markets that are constricted by mts or water or zoning. If you know what you are doing and buy and sell right, you can make a killing.

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