Quote:
Originally Posted by ryman554
Or you lost a job and your rental needs a new roof.
Or you AND your tenant lost a job and quit paying.
Or you lost a tenant AND you had a medical emergency.
Face it: A lot of people lost an awful lot in the 2008 crash, and while those who lost a job and had a big mortgage were hit hard, those that were leveraged to the hilt (whether in equities or real-estate) were hit absolutely the hardest.
Leverage is great when things are good. Leverage is horrible when times are bad. If you can leverage AND have a sizeable emergency fund to get you through bad times, then by all means. It has been my experience that most that use leverage use it extremely aggressively and do not understand the risks involved.
So you are absolutely right, if you didn't sell, you did OK. Better than OK, even. Lots of folks were forced to sell -- you have only to look up foreclosure rates to see evidence of this.
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I love the quantitative terms like "an awful lot" and "lots of folks". And then we have, I only need to look up the foreclosure rates...blah, blah, blah. I have looked up the foreclosure rate...have you? And personally, I get tired of hyperbolic nonsense that gets bandied around on Internet sites that take on a life of its own. Of course, the media loves to quote things like a a half a trillion dollars of homes went into foreclosure. Oh dear...the sky is falling! Until of course we realize that the actual percentage of homes that went into foreclosure was roughly 2%. Yeah, so 98% didn't go into foreclosure. Oh my, but let's focus on that glass being 2% empty and not realize how many people actually weathered the crisis just fine.
https://www.statista.com/statistics/...sure-rate-usa/
U.S. Foreclosure Market Data by State - 2009 Totals
Total
Properties
with %Housing 1/every % Change % Change
Rate State Name Filings Units X HU from 2008 from 2007
Rank -------------- ---------- ---------- ------- ---------- ----------
U.S. 2,824,674
2.21 45 21.21 119.67
-------------- ---------- ---------- ----- ---------- ----------
30 Alabama 19,896 0.93 107 156.26* 257.07*
-------------- ---------- ---------- ----- ---------- ----------
31 Alaska 2,442 0.87 116 25.49 83.33
-------------- ---------- ---------- ----- ---------- ----------
2 Arizona 163,210 6.12 16 39.60 323.17
-------------- ---------- ---------- ----- ---------- ----------
23 Arkansas 16,547 1.29 78 15.90 158.30
-------------- ---------- ---------- ----- ---------- ----------
4 California 632,573 4.75 21 20.81 153.52
-------------- ---------- ---------- ----- ---------- ----------
10 Colorado 50,514 2.37 42 0.23 28.20
-------------- ---------- ---------- ----- ---------- ----------
21 Connecticut 19,679 1.37 73 -10.24 65.93
-------------- ---------- ---------- ----- ---------- ----------
35 Delaware 3,034 0.78 128 20.59 203.70*
-------------- ---------- ---------- ----- ---------- ----------
District of
Columbia 3,235 1.14 88 -22.64 316.34*
-------------- ---------- ---------- ----- ---------- ----------
3 Florida 516,711 5.93 17 34.10 212.61
-------------- ---------- ---------- ----- ---------- ----------
7 Georgia 106,110 2.68 37 24.46 79.67
-------------- ---------- ---------- ----- ---------- ----------
15 Hawaii 9,002 1.78 56 182.64 831.88
-------------- ---------- ---------- ----- ---------- ----------
6 Idaho 17,161 2.72 37 101.61* 371.46*
-------------- ---------- ---------- ----- ---------- ----------
9 Illinois 131,132 2.50 40 31.81 103.91
-------------- ---------- ---------- ----- ---------- ----------
18 Indiana 41,405 1.49 67 -9.87 47.98
-------------- ---------- ---------- ----- ---------- ----------
43 Iowa 5,681 0.43 234 5.50 38.46
-------------- ---------- ---------- ----- ---------- ----------
36 Kansas 9,056 0.74 135 45.64 272.06*
-------------- ---------- ---------- ----- ---------- ----------
40 Kentucky 9,682 0.51 197 33.66* 89.66*
-------------- ---------- ---------- ----- ---------- ----------
39 Louisiana 11,750 0.63 158 64.82* 196.12*
-------------- ---------- ---------- ----- ---------- ----------
41 Maine 3,178 0.46 219 11.47 1,011.19*
-------------- ---------- ---------- ----- ---------- ----------
13 Maryland 43,248 1.87 54 33.74 129.08
-------------- ---------- ---------- ----- ---------- ----------
22 Mass. 36,119 1.33 75 -18.54 103.64
-------------- ---------- ---------- ----- ---------- ----------
8 Michigan** 118,302 2.61 38 11.54 35.65
-------------- ---------- ---------- ----- ---------- ----------
20 Minnesota 31,697 1.38 73 56.28 174.27
-------------- ---------- ---------- ----- ---------- ----------
42 Mississippi 5,402 0.43 232 135.59* 283.39*
-------------- ---------- ---------- ----- ---------- ----------
28 Missouri 28,519 1.08 93 -8.75†21.40â€
-------------- ---------- ---------- ----- ---------- ----------
44 Montana 1,373 0.32 317 10.19 19.39
-------------- ---------- ---------- ----- ---------- ----------
46 Nebraska 1,845 0.24 423 -42.16 -49.26
-------------- ---------- ---------- ----- ---------- ----------
1 Nevada 112,097 10.17 10 44.28 225.70
-------------- ---------- ---------- ----- ---------- ----------
26 New Hampshire 7,210 1.21 82 8.65 482.39*
-------------- ---------- ---------- ----- ---------- ----------
14 New Jersey 63,208 1.81 55 1.11 103.43
-------------- ---------- ---------- ----- ---------- ----------
32 New Mexico 7,212 0.84 120 93.51* 140.88*
-------------- ---------- ---------- ----- ---------- ----------
38 New York 50,369 0.63 158 0.67 30.19
-------------- ---------- ---------- ----- ---------- ----------
37 North Carolina 28,384 0.69 145 -16.07 -2.46
-------------- ---------- ---------- ----- ---------- ----------
49 North Dakota 390 0.13 796 5.12 56.00
-------------- ---------- ---------- ----- ---------- ----------
12 Ohio 101,614 2.01 50 -10.53 12.93
-------------- ---------- ---------- ----- ---------- ----------
34 Oklahoma 12,937 0.80 125 3.79 56.70
-------------- ---------- ---------- ----- ---------- ----------
11 Oregon 34,121 2.12 47 89.55 303.27
-------------- ---------- ---------- ----- ---------- ----------
33 Pennsylvania 44,732 0.82 122 20.21 173.11
-------------- ---------- ---------- ----- ---------- ----------
27 Rhode Island 5,065 1.12 89 -23.06 175.57
-------------- ---------- ---------- ----- ---------- ----------
25 South Carolina 25,163 1.24 80 67.81* 492.49*
-------------- ---------- ---------- ----- ---------- ----------
47 South Dakota 765 0.21 467 90.30* 3,087.50*
-------------- ---------- ---------- ----- ---------- ----------
17 Tennessee 40,733 1.49 67 -7.75††57.19†â€
-------------- ---------- ---------- ----- ---------- ----------
29 Texas 100,045 1.06 94 4.04 18.44
-------------- ---------- ---------- ----- ---------- ----------
5 Utah 27,140 2.93 34 82.93 264.88
-------------- ---------- ---------- ----- ---------- ----------
50 Vermont 143 0.05 2178 4.38 393.10*
-------------- ---------- ---------- ----- ---------- ----------
16 Virginia 52,127 1.59 63 6.36 219.66â€
-------------- ---------- ---------- ----- ---------- ----------
24 Washington 35,268 1.29 78 35.34 132.27
-------------- ---------- ---------- ----- ---------- ----------
48 West Virginia 1,479 0.17 597 115.91* 221.52*
-------------- ---------- ---------- ----- ---------- ----------
19 Wisconsin 35,252 1.38 73 78.99* 190.55*
-------------- ---------- ---------- ----- ---------- ----------
45 Wyoming 717 0.30 338 5.91 101.40
-------------- ---------- ---------- ----- ---------- ----------
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