I think if I were going to move now I would just trade my paid off house for another.I am sick of housing bubbles and want life to go on. Most likely my next purchase will be rental property or developement property. I will go for it when the risk reward analysis point towards a likelyhood of increasing my cash flow or equity positions going forward. I would like to know ,at the least, that there is a possibility that we are coming into a period of economic growth and stability. Since we seem to be on the opposite extreme and prices are absurd, I tend to want to take a wait and see attitude. I have been doing some feasability studies of small developements with a potential partner where I would build a house or a few houses, maybe a fourplex and keep them rented out if profit opportunities are minimal at finish of construction. They pencil out now if I we can keep carrying costs down and don’t pay myself for much of the developement and construction, which is a luxury I have with the mortgage paid off and my wife working part time. The other project we will be studying is fixing up long term rentals.When we can put 20% down and fix them up/add on for the cost of materials only and rent them positive or at a very slight negative cash flow we will start collecting them. I just love sweat equity real estate opportunities and won’t delay more than I have to. I am not really worried about the exact bottom in this scenario because if prices keep falling it will have a positive “dollar cost averaging” effect(as long as things don’t go completely kaput).Feel free to explain that dollar cost averaging is not the technically the right analogy. I know there is a real estate investment term but can’t think of it right now.
“Laddering” or something like that?
