Like you say, the cash flow looks awful based on current CA prices. I take it that these small complexes are as overpriced as SFRs and single condos. I’d hoped that maybe some of the bubble had bypassed these investment properties.
So it seems, at least here in CA, that it’s all about borrowing and buying as much as possible to get the maximum future HPA. Isn’t that the big gamble that so many piggs are leery of? Or is there some other payoff I’m missing? My goal was more to buy some future rental income, and not to rely on future HPA.
It sounds like buying for future rental income would have worked well if done back in the mid to late 90’s. But unless prices revert very sharply, now it doesn’t look too hot to me.
