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which takes decades and a sale (or refinancing) to ever realize
This is speculation.
which is needed to justify having your own cash in play for that period.
This is a business.
So you say. On the other hand, I have done very well in life taking the long view, and I don't need to justify to anyone my choices about how I've had my "own cash in play" for any period.
But I am not advocating for or against rental property as an investment. I am just pointing out that cash flow is typically negative for some years on any new acquisition.
So you say. On the other hand, I have done very well in life taking the long view, and I don't need to justify to anyone my choices about how I've had my "own cash in play" for any period.
But I am not advocating for or against rental property as an investment. I am just pointing out that cash flow is typically negative for some years on any new acquisition.
I have been doing it for more than 25 years. at least 7 of those years has been with a partner who is one of the most successful ,famous real estate investors in ny .
I can't think of any of our property that had positive cash flow year one even going back before I was involved.
No! There is a difference between making a profit on a long-term investment and having a positive cash flow in the short term.
And neither one of them would be possible under the math and assumptions posted earlier.
Quote:
Originally Posted by Hamish Forbes
I know -- I'm one of them
And the rents you are able to charge in your local market are closer to half a percent of the current market value of the property or to one percent? You have of course answered this question before, so feel free to go back and check on that. Wouldn't want to be contradicting yourself.
But I am not advocating for or against rental property as an investment. I am just pointing out that cash flow is typically negative for some years on any new acquisition.
it just amazes me how how someone can argue and argue about something they have no experience with , never did themselves and are just pulling assumptions out of the air.
come back and argue after you have a few deals under your belt , otherwise this is just silly.
Last edited by mathjak107; 06-21-2013 at 02:23 AM..
And neither one of them would be possible under the math and assumptions posted earlier.
And the rents you are able to charge in your local market are closer to half a percent of the current market value of the property or to one percent? You have of course answered this question before, so feel free to go back and check on that. Wouldn't want to be contradicting yourself.
What on earth are you trying to say? Here is my earlier comment regarding rent - one half of one percent -- which matches exactly my more recent post. Where is the contradiction?
Quote:
Originally Posted by Hamish Forbes
This is what I am getting on my rental property even here in NC -- one half of one percent. One percent is completely out of reach.
If you disagree with the assumptions in my more recent post, please let me know which and how. You and I agree that the rent centers around a half percent, and the rest is arithmetic. Ultimately gains come from appreciation, slowly increasing rents, and capital gains at resale. Cash flow is typically negative for some years.
By the way, your posts would be a lot better if you would drop the constant, condescending sarcasm. I sense that a lot of your readers here are getting really tired of it. Too bad, as you have some interesting ideas.
my sentements as well. you can tell he has smarts but he tends to reply in very sarcastic ways whether he is right or wrong.
as they say a little knowledge is a dangerous thing as you only know what you know but do not factor in all the things you do not know which you learn from doing and that is where he gets into trouble.
with many things in the financial world on paper and theory thats how things should play out , in practice they rarely do.
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