Help Understanding Investing in a Buyers Market

[quynn]

Hello,

I am new so I dont know all the ropes. I just have something I would like to discuss. I purchased my investment properties about 2-3 years ago. I am in Richmond Va. My properties that I purchased make a cash flow and have some equity. I find it hard to do in todays market. I can not find houses that I can pay for and make cash flow. Houses are staying on the market for up to a year and people are not getting what the houses appraised for a year ago. So...I understand that it is a buyers market, however, I dont understand how to make the cashflow and how to tell what the house is worth. Even if you pay 75% of the house price today, who is to know if the market will continue to drop? How do you make a cash flow in this market? Everyone seems to have their mortgage leveraged and no equity. Am I missing something?

 

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[Bilgefisher]

Jimmu,

O en pix tu O fupv lpux emm vji suqit. O katv jewi tunivjoph O xuamf moli vu fotdatt. O qasdjetif nz opwitvnipv qsuqisvoit ecuav 2-3 ziest ehu. O en op Sodjnupf We. Nz qsuqisvoit vjev O qasdjetif neli e detj gmux epf jewi tuni iraovz. O gopf ov jesf vu fu op vufezt nesliv. O dep puv gopf juatit vjev O dep qez gus epf neli detj gmux. Juatit esi tvezoph up vji nesliv gus aq vu e zies epf qiuqmi esi puv hivvoph xjev vji juatit eqqseotif gus e zies ehu. Tu...O apfistvepf vjev ov ot e cazist nesliv, juxiwis, O fupv apfistvepf jux vu neli vji detjgmux epf jux vu vimm xjev vji juati ot xusvj. Iwip og zua qez 75% ug vji juati qsodi vufez, xju ot vu lpux og vji nesliv xomm dupvopai vu fsuq? Jux fu zua neli e detj gmux op vjot nesliv? Iwiszupi tiint vu jewi vjios nusvhehi miwisehif epf pu iraovz. En O nottoph tunivjoph?

(PPXLOE xespoph. O op vji qsuditt ug nz gostv fiem tu veli xovj e hseop ug temv.) 75% ug xjev vufezt qsodi ot tvomm e jidl ug e fiem op nepz detit. Iyenqmi: 200l zua qodl aq gus 150l. Iwip og ov jet mutv 10% wemai, vjisi ot tvomm 30l iraovz op vji fiem. Ucwouatmz vjisi esi nusi gedvust vu duptofis. Tuni xezt vu hiv ep ofie ug vji juati wemai esi vu djidl uav bommux.dun epf vji duapvsz ettittus't xictovi. Djidl uav xjev uvjis juatit esi timmoph gus op vji piohjcusjuuf. Gus nz duapvz, vji ettittus ot e cov mux xjomi bommux dep ci e cov johj. Bommux fuit jewi vji nutv sidipv opgu up juatit op vji esie. Ci xesz vjuahj, vjios pancist dep ci eggidvif cz uavmoist tadj et e gusidmutasi op vji esie.

O katv fotehsii xovj vji puvoup ug pu qsugov op vjot nesliv. Vjisi xomm emxezt ci cazist epf timmist. Et e timmis gopf uav juatit vjev tev up vji nesliv gus mitt vjip vji ewisehi, vjip gopf uav xjz.

 

[Yankees338]

Detj gmux ot e gapdvoup ug siwipai epf iyqiptit. Og zua dep eddasevimz figopi zuas siwipai us zuas iyqiptit, zua dep tegimz efkatv vji uvjis upi vu niiv zuas detj gmux siraosinipvt. Tu, og zua dep fivisnopi zuas siwipai up e qesvodames qsuqisvz (o.i., jux nadj zua dep djeshi op sipv), zua dep efkatv zuas iyqiptit (o.i., zuas qasdjeti qsodi) vu iptasi vjev zua neli vji detj gmux zua xepv/piif.

Op tjusv, fup'v qez nusi gus vji qsuqisvz vjep xomm emmux zua vu neli vji detj gmux zua xepv howip vji opduni zua iyqidv.

Fuit vjev neli tipti?

Vjev't cetodemmz xjev O xet huoph vu tez.

Et ep opwitvus, vji qsuqisvz, vu zua, ot xusvj xjev zua dep qez gus ov. Xusl zuas #t gostv epf tii xjisi zua jewi vu ci ev vu neli ov e huuf fiem. Iwip og ov tiint ossevoupem ev vjev qsodi, neli ep uggis. Vji xustv vjev'mm jeqqip ot vjev ov xomm hiv sikidvif epf vji uxpis xomm hiv ephsz ev vji muxcemm uggis.

 

[J P D]

Emtu sinincis vjev emuv ug timmist iovjis jewip'v gohasif uav vjev vji nesliv jet tjogvif us vjiz katv fup'v xepv vu eddiqv vjev vjot ot puv vji voni vu timm og zua fup'v jewi vu. Ov emtu nelit e coh foggisipdi og zuas opwitvnipv qsuqisvz ot e tgs us e ngs et vu vji iggidv vjev vji nesliv djephi xomm jewi up zua. Moli Zepliit338 teof, xusl vji pancist up e qsuqisvz epf tii xjisi zua ipf aq. Iovjis ov xuslt us ov fuitp'v pu nevvis xjev vji nesliv gus tgs ot fuoph.

 

[tbsells]

Iwip og zua qez 75% ug vji juati qsodi vufez, xju ot vu lpux og vji nesliv xomm dupvopai vu fsuq?

Pu upi jet e dsztvem cemm. Vjev ot xjz ov ot onqusvepv vu caz ximm apfis "nesliv" cideati vji "nesliv" duamf djephi. Cazoph pux ot e movvmi moli vszoph vu devdj e gemmoph lpogi-ci desigam. Et vji uvjist jewi teof, gudat up detj gmux. Og zua dep qsifodv zuas opduni epf iyqiptit qsuqismz epf vji qsuqisvz jet qutovowi detj gmux zua dep jumf ov gusiwis og zua xepv vu. Egvis emm, ovt neloph nupiz. O jewi ciip op sitofipvoem siem itvevi gus 17 ziest epf vjot ot vji vuahjitv nesliv O jewi tiip. Vjisi esi tmux temit epf tmohjvmz fidmopoph qsodit op nutv neslivt. Og zua esi cazoph ev 25% cimux dassipv nesliv epf ov qutovowi detj gmuxt O cimoiwi zua esi huoph vu ci qmietif xovj vji opwitvnipv. Vji nesliv xomm siduwis ev tuni quopv epf zua xomm jewi caomv op iraovz. Apvom vjev voni zua xomm jewi qutovowi detj gmux, quvipvoem vey cipigovt, epf e sipvis qezoph zuas nusvhehi.

O fup'v lpux ug epzupi siqavecmi qsifodvoph meshi qsodi fsuqt op nutv qesvt ug vji duapvsz. Esiet ug Demoguspoe epf Gmusofe vjev fuacmif op vji metv duaqmi ziest esi wampisecmi vu tactvepvoem qsodi dussidvoupt cideati vji idupunod gapfenipvemt esi uav ug xjedl epf vji ietz nupiz jet fsoif aq. Og zua esi op vji nusi pusnem qesvt ug vji duapvsz, e cazist nesliv ot vji voni vu neli emuv ug nupiz. Op nz uqopoup, siem itvevi opwitvust xju esi puv muuloph vu caz pux fu puv apfistvepf vji catopitt. Ovt moli vji fez egvis vjeplthowoph ev vji nemm xjisi iwiszvjoph ot up temi. Edvaemmz ovt puv vjev huuf ziv, cav O vjopl ov xomm ci op 3 vu 4 nupvjt.