jg, I am not a real estate investor, and am only learning about real estate from the realtors I met doing my research the last few months. In my opinion, you would buy a rental property when it is cash flow positive, but if that condition is met and prices are still falling, I would definitely wait. I am going to buy a home and/or rental property after the prices stop falling, which ought to take at least 5 years. The biggest drops are yet to come…. I expect the largest drops in 2008 and 2009. Poway lost 5% – 10% this year, it will lose 8 – 15% next year, and 12 – 25% in each of the next 3 years. That is just a wild guess, I have no data to back it up.
For advice on buying rental property, we ought to start a thread, and ask the landlords and realtors on this forum.
Calculated Risk has data, which I posted recently, about the percentage drop in CA in the last downturn; the biggest drops came in years 3-5, an dit was in the double digits in each of those years. We are in year 1.
What does Robert Campbell teach about timing the market? I know Chris Johnston speaks highly of him, so he must be a great resource.
