DWCAP, patient, et al., I think you are onto something here, J6PK may be the key. On the way up, our kind ran the numbers and thought it was out of whack and overpriced in 2003 or 2004. J6PK, kept it going far beyond what we thought was silly. As the numbers reverse, we do the same math and the minute we think it has hit the fundamental balance, from that point it will be another year or two before J6PK realizes it as well, so the bottom won’t be the bottom just because our calculators say it is, so it is just as likely to overcorrect as drastically as it rose because J6PK’s inability to borrow even when he realizes the time is right. It is very possible that the coming 24 months might have a situation where the stars line up and cash nuetral or cash positive rentals are a reality.
Now I need to find a good local dive bar so I can make some new friends and be able to take the pulse of J6PK.
