In weighing the merits of buying distressed commercial and residential properties, or the loans thereon, keep in mind the ease of renting them at vastly lower rents. You can steal tenants from the competition which is in denial not only about the value of their own property, but the sinking rental value as well.
When you buy a property at half its peak price, you can slash the rents to fill it up and still make cash flow.
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.
