Comments on: Poll: Do you personally know someone that has bought Seattle-area real estate as an “investment”? http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/ News & discussion about real estate & the housing bubble in the Seattle area. Sat, 21 Nov 2009 10:02:55 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50702 mikal Wed, 25 Jun 2008 05:03:12 +0000 http://seattlebubble.com/blog/?p=2078#comment-50702 When it was bought I was told by family that I overpaid and was nuts. 96 and 97<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50702','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50702','mikal','When it was bought I was told by family that I overpaid and was nuts. 96 and 97',''); return false;">Quote</a></div> When it was bought I was told by family that I overpaid and was nuts. 96 and 97
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]]> By: EconE http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50700 EconE Wed, 25 Jun 2008 04:45:45 +0000 http://seattlebubble.com/blog/?p=2078#comment-50700 Mikal...perhaps each time you post about your properties "cash flowing", you should also include the fact that you bought at the bottom of the last cycle during the 90's.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50700','EconE',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50700','EconE','Mikal...perhaps each time you post about your properties \"cash flowing\", you should also include the fact that you bought at the bottom of the last cycle during the 90\'s.',''); return false;">Quote</a></div> Mikal…perhaps each time you post about your properties “cash flowing”, you should also include the fact that you bought at the bottom of the last cycle during the 90’s.
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]]> By: Keith http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50699 Keith Wed, 25 Jun 2008 04:43:15 +0000 http://seattlebubble.com/blog/?p=2078#comment-50699 I own some rentals in the midwest, and it's obviously a different ballgame. I'm wondering if you can find many properties in the greater Seattle area right now that are cash flowing from day 1 - assuming 10-20% down. I'll be moving home in 12-24 mo's and will look to do some investing in the NW.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50699','Keith',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50699','Keith','I own some rentals in the midwest, and it\'s obviously a different ballgame. I\'m wondering if you can find many properties in the greater Seattle area right now that are cash flowing from day 1 - assuming 10-20% down. I\'ll be moving home in 12-24 mo\'s and will look to do some investing in the NW.',''); return false;">Quote</a></div> I own some rentals in the midwest, and it’s obviously a different ballgame. I’m wondering if you can find many properties in the greater Seattle area right now that are cash flowing from day 1 – assuming 10-20% down. I’ll be moving home in 12-24 mo’s and will look to do some investing in the NW.
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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50697 mikal Wed, 25 Jun 2008 03:18:35 +0000 http://seattlebubble.com/blog/?p=2078#comment-50697 I'm my own landlord and spent maybe an hour on stuff last year. This year I had to do a paint, cleaning, and carpet replacement. That was the first time I had touched the unit in six years. I did the remodeling in all four units and did it right. All I will have to do for the next twenty years is paint and keep them rented. It is pretty easy. After the remodels, all were cash flow immediately.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50697','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50697','mikal','I\'m my own landlord and spent maybe an hour on stuff last year. This year I had to do a paint, cleaning, and carpet replacement. That was the first time I had touched the unit in six years. I did the remodeling in all four units and did it right. All I will have to do for the next twenty years is paint and keep them rented. It is pretty easy. After the remodels, all were cash flow immediately.',''); return false;">Quote</a></div> I’m my own landlord and spent maybe an hour on stuff last year. This year I had to do a paint, cleaning, and carpet replacement. That was the first time I had touched the unit in six years. I did the remodeling in all four units and did it right. All I will have to do for the next twenty years is paint and keep them rented. It is pretty easy. After the remodels, all were cash flow immediately.
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]]> By: david losh http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50689 david losh Wed, 25 Jun 2008 01:28:49 +0000 http://seattlebubble.com/blog/?p=2078#comment-50689 Owning Real Estate and being a land lord is a job. It's a job I don't enjoy. In terms of cash flow there are present dollars and future dollars. Each person has thier own criteria. Most investors will take a negative cash flow if it can be off set by other circumstance. Some people create additional living areas in attics or basements, others rent rooms. Most improve a property to create added value while having tenents. In all cases, if you plan on keeping the property for thirty years, they will cash flow over time. That fifteen hundred dollar rent used to be $750, not that long ago. It's a job and a business.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50689','david losh',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50689','david losh','Owning Real Estate and being a land lord is a job. It\'s a job I don\'t enjoy. \r\nIn terms of cash flow there are present dollars and future dollars. Each person has thier own criteria. Most investors will take a negative cash flow if it can be off set by other circumstance. Some people create additional living areas in attics or basements, others rent rooms. Most improve a property to create added value while having tenents. \r\nIn all cases, if you plan on keeping the property for thirty years, they will cash flow over time. That fifteen hundred dollar rent used to be $750, not that long ago.\r\nIt\'s a job and a business.',''); return false;">Quote</a></div> Owning Real Estate and being a land lord is a job. It’s a job I don’t enjoy.
In terms of cash flow there are present dollars and future dollars. Each person has thier own criteria. Most investors will take a negative cash flow if it can be off set by other circumstance. Some people create additional living areas in attics or basements, others rent rooms. Most improve a property to create added value while having tenents.
In all cases, if you plan on keeping the property for thirty years, they will cash flow over time. That fifteen hundred dollar rent used to be $750, not that long ago.
It’s a job and a business.
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]]> By: Keith http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50640 Keith Tue, 24 Jun 2008 14:42:54 +0000 http://seattlebubble.com/blog/?p=2078#comment-50640 David, What kind of numbers do you consider to be cash flowing? Do you have a quick formula that you use to do your initial evaluation, i.e. the 1% rule or some other such equation?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50640','Keith',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50640','Keith','David,\r\n\r\nWhat kind of numbers do you consider to be cash flowing? Do you have a quick formula that you use to do your initial evaluation, i.e. the 1% rule or some other such equation?',''); return false;">Quote</a></div> David,

What kind of numbers do you consider to be cash flowing? Do you have a quick formula that you use to do your initial evaluation, i.e. the 1% rule or some other such equation?

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]]> By: b http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50624 b Tue, 24 Jun 2008 04:19:03 +0000 http://seattlebubble.com/blog/?p=2078#comment-50624 mikal - Do you use a property manager, or are you the direct landlord? If you are not using a property manager, then you certainly are not living for free. For some people playing landlord for $x/month is worth it, for many others (myself included) they'd rather have one job and relax instead.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50624','b',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50624','b','mikal -\r\n\r\nDo you use a property manager, or are you the direct landlord? If you are not using a property manager, then you certainly are not living for free. For some people playing landlord for $x\/month is worth it, for many others (myself included) they\'d rather have one job and relax instead.',''); return false;">Quote</a></div> mikal -

Do you use a property manager, or are you the direct landlord? If you are not using a property manager, then you certainly are not living for free. For some people playing landlord for $x/month is worth it, for many others (myself included) they’d rather have one job and relax instead.

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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50621 mikal Tue, 24 Jun 2008 03:58:25 +0000 http://seattlebubble.com/blog/?p=2078#comment-50621 That is completely insane. Renting anything for more than $1500 a month is nuts. Live a little more frugally and invest that money in ANYTHING.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50621','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50621','mikal','That is completely insane. Renting anything for more than $1500 a month is nuts. Live a little more frugally and invest that money in ANYTHING.',''); return false;">Quote</a></div> That is completely insane. Renting anything for more than $1500 a month is nuts. Live a little more frugally and invest that money in ANYTHING.
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]]> By: david losh http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50618 david losh Tue, 24 Jun 2008 03:32:45 +0000 http://seattlebubble.com/blog/?p=2078#comment-50618 I quote in your own words “committment, sacrifice, and balls” to invest that additional paper equity into 3 more properties now at today’s insane prices around Seattle?

How do you mean insane prices? I don’t hold long term. If I did yes there are many properties that I have looked at that are good properties very reasonably priced.
In the long term it’s about cash flow. It’s about paying the property off. It’s about hard dollars going in for a return in the future.
As you buy it’s about rental income. How are you going wrong with that? Are rents going down? Have rents really gone down that much in the past year? I’ve heard some landlords say they are raising rents because people can’t buy.
So even if you bought at the top of the market in 2007 with rental in mind that’s how you structured your offer.
Today, hell yes, there are good properties for sale. I’ve heard some people are paying $2200 to $2400 to rent a house. How insane is that?

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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50610 mikal Tue, 24 Jun 2008 00:57:44 +0000 http://seattlebubble.com/blog/?p=2078#comment-50610 It's only lost opportunity if I put a lot of money into it. I haven't. I don't plan on selling for at least twenty years. I don't see defation of that length of time. Solyent green is PEOPLE, It's PEOPLE.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50610','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50610','mikal','It\'s only lost opportunity if I put a lot of money into it. I haven\'t. I don\'t plan on selling for at least twenty years. I don\'t see defation of that length of time. Solyent green is PEOPLE, It\'s PEOPLE.',''); return false;">Quote</a></div> It’s only lost opportunity if I put a lot of money into it. I haven’t. I don’t plan on selling for at least twenty years. I don’t see defation of that length of time. Solyent green is PEOPLE, It’s PEOPLE.
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]]> By: Scotsman http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50609 Scotsman Tue, 24 Jun 2008 00:33:36 +0000 http://seattlebubble.com/blog/?p=2078#comment-50609 Anyone who thinks they are living "for free" doesn't understand opportunity costs and relative returns. And there's this other thing called deflation that won't be understood by many until it's too late. Get ready for interesting times.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50609','Scotsman',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50609','Scotsman','Anyone who thinks they are living \"for free\" doesn\'t understand opportunity costs and relative returns. And there\'s this other thing called deflation that won\'t be understood by many until it\'s too late. Get ready for interesting times.',''); return false;">Quote</a></div> Anyone who thinks they are living “for free” doesn’t understand opportunity costs and relative returns. And there’s this other thing called deflation that won’t be understood by many until it’s too late. Get ready for interesting times.
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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50607 mikal Tue, 24 Jun 2008 00:17:58 +0000 http://seattlebubble.com/blog/?p=2078#comment-50607 I live in Greenwood. That would be one of the places that hasn't lost any value. It feels really good.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50607','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50607','mikal','I live in Greenwood. That would be one of the places that hasn\'t lost any value. It feels really good.',''); return false;">Quote</a></div> I live in Greenwood. That would be one of the places that hasn’t lost any value. It feels really good.
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]]> By: Tsuru http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50605 Tsuru Mon, 23 Jun 2008 23:59:43 +0000 http://seattlebubble.com/blog/?p=2078#comment-50605 <blockquote>The market would have to drop 60% for me to start wondering about being underwater, but that would take another 10% drop.</blockquote> Sure, whatever. But your paper net worth is dropping every day as the "equity" you hold in each of these homes deteriorates. That can't be a good feeling.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50605','Tsuru',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50605','Tsuru','<blockquote>The market would have to drop 60% for me to start wondering about being underwater, but that would take another 10% drop.<\/blockquote>\r\n\r\nSure, whatever. But your paper net worth is dropping every day as the \"equity\" you hold in each of these homes deteriorates. That can\'t be a good feeling.',''); return false;">Quote</a></div>

The market would have to drop 60% for me to start wondering about being underwater, but that would take another 10% drop.

Sure, whatever. But your paper net worth is dropping every day as the “equity” you hold in each of these homes deteriorates. That can’t be a good feeling.

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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50603 mikal Mon, 23 Jun 2008 23:50:08 +0000 http://seattlebubble.com/blog/?p=2078#comment-50603 I live for free and am not selling ever as far as I can see. I'm not bitter at all to live for free. The market would have to drop 60% for me to start wondering about being underwater, but that would take another 10% drop.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50603','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50603','mikal','I live for free and am not selling ever as far as I can see. I\'m not bitter at all to live for free. The market would have to drop 60% for me to start wondering about being underwater, but that would take another 10% drop.',''); return false;">Quote</a></div> I live for free and am not selling ever as far as I can see. I’m not bitter at all to live for free. The market would have to drop 60% for me to start wondering about being underwater, but that would take another 10% drop.
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]]> By: Tsuru http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50602 Tsuru Mon, 23 Jun 2008 23:44:05 +0000 http://seattlebubble.com/blog/?p=2078#comment-50602 Just signed up for another year on my rental in "downtown" Redmond. No rent increase this year. <blockquote>And the epiphany is that some of you are bitter unhappy assholes.</blockquote> Actually, I couldn't be happier. *shrug* I guess I'd write comments like this if I was watching my "wealth" evaporate. But I'm just a loser renter.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50602','Tsuru',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50602','Tsuru','Just signed up for another year on my rental in \"downtown\" Redmond. No rent increase this year.\r\n\r\n<blockquote>And the epiphany is that some of you are bitter unhappy assholes.<\/blockquote>\r\n\r\nActually, I couldn\'t be happier. \r\n\r\n*shrug*\r\n\r\nI guess I\'d write comments like this if I was watching my \"wealth\" evaporate. But I\'m just a loser renter.',''); return false;">Quote</a></div> Just signed up for another year on my rental in “downtown” Redmond. No rent increase this year.

And the epiphany is that some of you are bitter unhappy assholes.

Actually, I couldn’t be happier.

*shrug*

I guess I’d write comments like this if I was watching my “wealth” evaporate. But I’m just a loser renter.

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]]> By: TheHulk http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50601 TheHulk Mon, 23 Jun 2008 23:42:42 +0000 http://seattlebubble.com/blog/?p=2078#comment-50601 Hey Tim, You should check out this link: http://www.jchs.harvard.edu/publications/markets/son2007/metro_affordability_index_2007.xls It was posted on CR and details a very relevant statistic for various metro areas: Median home price to median income. (Notice how seattle really took off from 2003 onwards and this spreadsheet doesn't even cover our 2007 peak, it only has data until 2006).<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50601','TheHulk',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50601','TheHulk','Hey Tim,\r\n\r\nYou should check out this link:\r\nhttp:\/\/www.jchs.harvard.edu\/publications\/markets\/son2007\/metro_affordability_index_2007.xls\r\n\r\nIt was posted on CR and details a very relevant statistic for various metro areas: Median home price to median income. (Notice how seattle really took off from 2003 onwards and this spreadsheet doesn\'t even cover our 2007 peak, it only has data until 2006).',''); return false;">Quote</a></div> Hey Tim,

You should check out this link:
http://www.jchs.harvard.edu/publications/markets/son2007/metro_affordability_index_2007.xls

It was posted on CR and details a very relevant statistic for various metro areas: Median home price to median income. (Notice how seattle really took off from 2003 onwards and this spreadsheet doesn’t even cover our 2007 peak, it only has data until 2006).

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]]> By: TheHulk http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50599 TheHulk Mon, 23 Jun 2008 23:31:57 +0000 http://seattlebubble.com/blog/?p=2078#comment-50599 Sauce for goose is not necessarily sauce for the gander. That being said, David if you purchased your 5 properties around 2000, I am sure you are doing quite well. Now, the real question is, do you have the - I quote in your own words <i><b>"committment, sacrifice, and balls"</b></i> to invest that additional paper equity into 3 more properties now at today's insane prices around Seattle?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50599','TheHulk',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50599','TheHulk','Sauce for goose is not necessarily sauce for the gander.\r\n\r\nThat being said, David if you purchased your 5 properties around 2000, I am sure you are doing quite well. Now, the real question is, do you have the - I quote in your own words <i><b>\"committment, sacrifice, and balls\"<\/b><\/i> to invest that additional paper equity into 3 more properties now at today\'s insane prices around Seattle?',''); return false;">Quote</a></div> Sauce for goose is not necessarily sauce for the gander.

That being said, David if you purchased your 5 properties around 2000, I am sure you are doing quite well. Now, the real question is, do you have the – I quote in your own words “committment, sacrifice, and balls” to invest that additional paper equity into 3 more properties now at today’s insane prices around Seattle?

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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50596 mikal Mon, 23 Jun 2008 22:18:59 +0000 http://seattlebubble.com/blog/?p=2078#comment-50596 And the epiphany is that some of you are bitter unhappy assholes.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50596','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50596','mikal','And the epiphany is that some of you are bitter unhappy assholes.',''); return false;">Quote</a></div> And the epiphany is that some of you are bitter unhappy assholes.
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]]> By: Eleua http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50592 Eleua Mon, 23 Jun 2008 21:34:31 +0000 http://seattlebubble.com/blog/?p=2078#comment-50592

The reality is that Real Estate has a straight line of appreciation tied to the Consumer Price Index. It’s like buying bonds.

Oh, boy. I sense a great epiphany in your future.

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]]> By: been there http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50587 been there Mon, 23 Jun 2008 20:52:59 +0000 http://seattlebubble.com/blog/?p=2078#comment-50587 David, I'm reasonably sure that those who bought property around Tokyo in the late eighties wouldn't share your sanguine view. As they say, past performance in no guarantee of future results or, if you prefer, your milage may vary.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50587','been there',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50587','been there','David,\r\nI\'m reasonably sure that those who bought property around Tokyo in the late eighties wouldn\'t share your sanguine view. \r\nAs they say, past performance in no guarantee of future results or, if you prefer, your milage may vary.',''); return false;">Quote</a></div> David,
I’m reasonably sure that those who bought property around Tokyo in the late eighties wouldn’t share your sanguine view.
As they say, past performance in no guarantee of future results or, if you prefer, your milage may vary.
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]]> By: david losh http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50567 david losh Mon, 23 Jun 2008 18:35:31 +0000 http://seattlebubble.com/blog/?p=2078#comment-50567 The vote button didn't work. Most of my clients and I are Real Estate investors. There is a lot of speculation on this site about who investors are. The pepper seems to be the model you all relate to. Real Estate is a long term investment measured by years. I don't do that. The vast majority of investors build portfolios to pay down the principle balance to cash flow the properties. There is a saying that you only sell so you can buy something better. Leveraging into other properties is for those times of appreciation. Most people here only look at today's market place. The reality is that Real Estate has a straight line of appreciation tied to the Consumer Price Index. It's like buying bonds. People who call an investor lucky for holding on to property for extended periods are so wrong. It takes a committment, sacrifice, and balls. You give up those family trips, or new car, to keep your place afloat. My favorite investor lived in a basement for so long it seems normal to him. You eat a lot of rice and beans for the future return of a secure retirement. If you think your pension, social security, or stock portfolio can out perform five good living units, four for rent, and one to live in, you need to rework your numbers.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50567','david losh',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50567','david losh','The vote button didn\'t work.\r\nMost of my clients and I are Real Estate investors. There is a lot of speculation on this site about who investors are. The pepper seems to be the model you all relate to. \r\nReal Estate is a long term investment measured by years. I don\'t do that. The vast majority of investors build portfolios to pay down the principle balance to cash flow the properties. \r\nThere is a saying that you only sell so you can buy something better. Leveraging into other properties is for those times of appreciation. Most people here only look at today\'s market place. The reality is that Real Estate has a straight line of appreciation tied to the Consumer Price Index. It\'s like buying bonds. \r\nPeople who call an investor lucky for holding on to property for extended periods are so wrong. It takes a committment, sacrifice, and balls. You give up those family trips, or new car, to keep your place afloat. My favorite investor lived in a basement for so long it seems normal to him. You eat a lot of rice and beans for the future return of a secure retirement. \r\nIf you think your pension, social security, or stock portfolio can out perform five good living units, four for rent, and one to live in, you need to rework your numbers.',''); return false;">Quote</a></div> The vote button didn’t work.
Most of my clients and I are Real Estate investors. There is a lot of speculation on this site about who investors are. The pepper seems to be the model you all relate to.
Real Estate is a long term investment measured by years. I don’t do that. The vast majority of investors build portfolios to pay down the principle balance to cash flow the properties.
There is a saying that you only sell so you can buy something better. Leveraging into other properties is for those times of appreciation. Most people here only look at today’s market place. The reality is that Real Estate has a straight line of appreciation tied to the Consumer Price Index. It’s like buying bonds.
People who call an investor lucky for holding on to property for extended periods are so wrong. It takes a committment, sacrifice, and balls. You give up those family trips, or new car, to keep your place afloat. My favorite investor lived in a basement for so long it seems normal to him. You eat a lot of rice and beans for the future return of a secure retirement.
If you think your pension, social security, or stock portfolio can out perform five good living units, four for rent, and one to live in, you need to rework your numbers.
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]]> By: geon http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50565 geon Mon, 23 Jun 2008 18:19:12 +0000 http://seattlebubble.com/blog/?p=2078#comment-50565 I thought everybody bought as an investement. :)<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50565','geon',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50565','geon','I thought everybody bought as an investement. :)',''); return false;">Quote</a></div> I thought everybody bought as an investement. :)
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]]> By: Ubersalad, Ph.D http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50564 Ubersalad, Ph.D Mon, 23 Jun 2008 17:36:59 +0000 http://seattlebubble.com/blog/?p=2078#comment-50564 mikal, when did you buy your duplexes? getting lucky and investing smart is not one of the same.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50564','Ubersalad, Ph.D',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50564','Ubersalad, Ph.D','mikal, when did you buy your duplexes? getting lucky and investing smart is not one of the same.',''); return false;">Quote</a></div> mikal, when did you buy your duplexes? getting lucky and investing smart is not one of the same.
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]]> By: David McManus http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50563 David McManus Mon, 23 Jun 2008 14:45:18 +0000 http://seattlebubble.com/blog/?p=2078#comment-50563 Yes, and they are all upside down. Boo hoo.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50563','David McManus',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50563','David McManus','Yes, and they are all upside down. \r\n\r\nBoo hoo.',''); return false;">Quote</a></div> Yes, and they are all upside down.

Boo hoo.

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]]> By: Eleua http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50561 Eleua Mon, 23 Jun 2008 06:49:01 +0000 http://seattlebubble.com/blog/?p=2078#comment-50561 We also toured a $2.85M (list price) "Open House" right after the kayak ride from Blake Island. Nice agent, but how bad does it have to be for a $2.85M house with 120' of low-bank beachfront and an unobstructed 180deg view of Seattle to hold an "Open House?" Homes in that price range don't do "open house." There were also more "open house" signs than "Obama '08" signs, or sightings of Toyota Priuses. For whacko-Left Bainbridge, that's not an inconsequential observation.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50561','Eleua',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50561','Eleua','We also toured a $2.85M (list price) \"Open House\" right after the kayak ride from Blake Island. Nice agent, but how bad does it have to be for a $2.85M house with 120\' of low-bank beachfront and an unobstructed 180deg view of Seattle to hold an \"Open House?\"\r\n\r\nHomes in that price range don\'t do \"open house.\"\r\n\r\nThere were also more \"open house\" signs than \"Obama \'08\" signs, or sightings of Toyota Priuses. For whacko-Left Bainbridge, that\'s not an inconsequential observation.',''); return false;">Quote</a></div> We also toured a $2.85M (list price) “Open House” right after the kayak ride from Blake Island. Nice agent, but how bad does it have to be for a $2.85M house with 120′ of low-bank beachfront and an unobstructed 180deg view of Seattle to hold an “Open House?”

Homes in that price range don’t do “open house.”

There were also more “open house” signs than “Obama ‘08″ signs, or sightings of Toyota Priuses. For whacko-Left Bainbridge, that’s not an inconsequential observation.

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]]> By: Eleua http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50560 Eleua Mon, 23 Jun 2008 06:34:15 +0000 http://seattlebubble.com/blog/?p=2078#comment-50560 Oh, yeah. In 2005-7, many of those were schooling me in the finer points of real estate investment (buy high, sell higher), and telling me how I might "win the lottery" and be able to buy a little slice of Heaven over here in Kitsap. They don't talk real estate anymore. My tongue has a hole in it from all the times I've had to bite it to keep my yap shut. Anyway...I took E-jr to Blake Island over the weekend and we stopped by Blakely Rock for a little marine biology lesson, when two 30-something kayakers showed up. We got to chatting and I found out that they are Bainbridge Island renters that sold their home in Ballard in 2007. WOW! I found someone that isn't in "the cult" of Bainbridge Isl. real estate. It felt like I was shot down behind enemy lines and hooked up with allied soldiers. SWEET! We talked about how overpriced everything is and how destructive the finances are to make ownership seem to work. I touched on my "20c" thesis and they seemed to agree, in principal. Wierd...what are the odds of finding two 30-somethings that sold in Ballard and moved to Bainbridge to become filthy, dirty renters? We are not alone.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50560','Eleua',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50560','Eleua','Oh, yeah. In 2005-7, many of those were schooling me in the finer points of real estate investment (buy high, sell higher), and telling me how I might \"win the lottery\" and be able to buy a little slice of Heaven over here in Kitsap.\r\n\r\nThey don\'t talk real estate anymore. My tongue has a hole in it from all the times I\'ve had to bite it to keep my yap shut.\r\n\r\nAnyway...I took E-jr to Blake Island over the weekend and we stopped by Blakely Rock for a little marine biology lesson, when two 30-something kayakers showed up. We got to chatting and I found out that they are Bainbridge Island renters that sold their home in Ballard in 2007.\r\n\r\nWOW! I found someone that isn\'t in \"the cult\" of Bainbridge Isl. real estate. It felt like I was shot down behind enemy lines and hooked up with allied soldiers. SWEET!\r\n\r\nWe talked about how overpriced everything is and how destructive the finances are to make ownership seem to work. I touched on my \"20c\" thesis and they seemed to agree, in principal.\r\n\r\nWierd...what are the odds of finding two 30-somethings that sold in Ballard and moved to Bainbridge to become filthy, dirty renters?\r\n\r\nWe are not alone.',''); return false;">Quote</a></div> Oh, yeah. In 2005-7, many of those were schooling me in the finer points of real estate investment (buy high, sell higher), and telling me how I might “win the lottery” and be able to buy a little slice of Heaven over here in Kitsap.

They don’t talk real estate anymore. My tongue has a hole in it from all the times I’ve had to bite it to keep my yap shut.

Anyway…I took E-jr to Blake Island over the weekend and we stopped by Blakely Rock for a little marine biology lesson, when two 30-something kayakers showed up. We got to chatting and I found out that they are Bainbridge Island renters that sold their home in Ballard in 2007.

WOW! I found someone that isn’t in “the cult” of Bainbridge Isl. real estate. It felt like I was shot down behind enemy lines and hooked up with allied soldiers. SWEET!

We talked about how overpriced everything is and how destructive the finances are to make ownership seem to work. I touched on my “20c” thesis and they seemed to agree, in principal.

Wierd…what are the odds of finding two 30-somethings that sold in Ballard and moved to Bainbridge to become filthy, dirty renters?

We are not alone.

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]]> By: TJ_98370 http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50558 TJ_98370 Mon, 23 Jun 2008 02:15:01 +0000 http://seattlebubble.com/blog/?p=2078#comment-50558 I did not vote in the poll because of the "Seattle area" qualification, But I know a couple of co-workers who were real estate "investors" in Kitsap, Jefferson,and Clallam Counties. They are both out of the game now, with the last one out saying that he just broke even with his build-a-new-house-for-profit speculation in Sequim. .<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50558','TJ_98370',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50558','TJ_98370','I did not vote in the poll because of the \"Seattle area\" qualification, But I know a couple of co-workers who were real estate \"investors\" in Kitsap, Jefferson,and Clallam Counties. They are both out of the game now, with the last one out saying that he just broke even with his build-a-new-house-for-profit speculation in Sequim. .',''); return false;">Quote</a></div> I did not vote in the poll because of the “Seattle area” qualification, But I know a couple of co-workers who were real estate “investors” in Kitsap, Jefferson,and Clallam Counties. They are both out of the game now, with the last one out saying that he just broke even with his build-a-new-house-for-profit speculation in Sequim. .
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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50555 mikal Mon, 23 Jun 2008 00:46:49 +0000 http://seattlebubble.com/blog/?p=2078#comment-50555 That would be called a dumb ass.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50555','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50555','mikal','That would be called a dumb ass.',''); return false;">Quote</a></div> That would be called a dumb ass.
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]]> By: Scotsman http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50554 Scotsman Sun, 22 Jun 2008 23:42:54 +0000 http://seattlebubble.com/blog/?p=2078#comment-50554 A friend bought too late, currently $100,000+ upside down, rented because it wouldn't sell, rent falls $1500/month short of covering his costs. I guess this would be coinsidered a "flop."<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50554','Scotsman',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50554','Scotsman','A friend bought too late, currently $100,000+ upside down, rented because it wouldn\'t sell, rent falls $1500\/month short of covering his costs. I guess this would be coinsidered a \"flop.\"',''); return false;">Quote</a></div> A friend bought too late, currently $100,000+ upside down, rented because it wouldn’t sell, rent falls $1500/month short of covering his costs. I guess this would be coinsidered a “flop.”
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]]> By: mikal http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50547 mikal Sun, 22 Jun 2008 22:14:47 +0000 http://seattlebubble.com/blog/?p=2078#comment-50547 I own two duplexes that not only pay their mortgages, but also cover the mortgage of the house I live in. So there is money to be made in real estate. I don't plan on selling for at least twenty years.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50547','mikal',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50547','mikal','I own two duplexes that not only pay their mortgages, but also cover the mortgage of the house I live in. So there is money to be made in real estate. I don\'t plan on selling for at least twenty years.',''); return false;">Quote</a></div> I own two duplexes that not only pay their mortgages, but also cover the mortgage of the house I live in. So there is money to be made in real estate. I don’t plan on selling for at least twenty years.
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]]> By: softwarengineer http://seattlebubble.com/blog/2008/06/22/poll-do-you-personally-know-someone-that-has-bought-seattle-area-real-estate-as-an-investment/#comment-50539 softwarengineer Sun, 22 Jun 2008 16:08:28 +0000 http://seattlebubble.com/blog/?p=2078#comment-50539 AN INVESTMENT TO FLIP OR FLOP?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('50539','softwarengineer',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('50539','softwarengineer','AN INVESTMENT TO FLIP OR FLOP?',''); return false;">Quote</a></div> AN INVESTMENT TO FLIP OR FLOP?
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