Worst Case Financial Scenarios ?

[an]

[quote=livinincali]
I didn’t really say anything about rents. It’s the months of vacancy you might have to endure. Can you immediately undercut the rents of everybody else in the market and get a new tenant? Most likely you probably could. Basically the question is how long can you carry leveraged rental property without collecting the rent and how quickly are you willing to lower the rental price.[/quote]
As I said earlier, if you can’t handle the vacancy, then you shouldn’t be a landlord. If you can’t afford to lower rent, then you probably bought too high and have too low of a return. Bad time comes and go. There’s no such thing as guarantee return every year forever. There will be time when you have to deal with losses. If you take the profit you make during the good years to cover your bad years and if you have a big enough reserve, then you can weather the storm. Strong hands will benefit greatly while weak hands will fold and lose money. Just imagine if you bought a few rentals in the 90s to early 2000s, then instead of being forced to sell in 2006-2008, you buy more, because you have an abundant reserve, then you’d be even better off while renters continue to pay for your mortgage, even if you’re making less profit. Some people prefer to stay vacant waiting for their rent price, but I think most strong hands will not mind lowering the rent 5-10% to get the place rented.

[an]

[quote=The-Shoveler]I think 1970’s-ish type inflation is very possible.

maybe 5-7 percent for 10 years.

And a strong-ish dollar to boot.[/quote]My crystal ball is broken, so I can’t say which way it will swing. But you definitely should ask yourself, are you ready for another 2006-2008 crash? If you are, then if we see another 70s/80s inflation, you’ll be golden.

[The-Shoveler]

2000 or 2008 repeat would be great for my 401K.

(been sitting on the side line far too long).

Yea I am good if that occurs, I just think at this point not the 1970’s so much as the 1980’s repeat looks most likely to me (but with much lower interest rates, maybe 7-8%).

By the mid 80’s wage growth was going through the roof as was GDP. (that is what I see as most likely, probably no one else see it that way LOL).

What on earth would make that happen??

penned up demand !!

Same as the 80’s for the most part.

Well unless Iraq takes us down Temporarily for a little while first.

[The-Shoveler]

In 1980 the largest part of the population was in their early/mid 20’s and it was incredibly hard to find or keep a Job and everyone thought Japan was going to take over the world and the USA was done!!

Sound familiar ?

[spdrun]

Well unless Iraq takes us down Temporarily for a little while first.

Then here’s to Iraq. And Ukraine. And $200/bbl oil. *clink*

[The-Shoveler]

And the Cold war was peaking LOL.

what killed it was the end of the cold war.

[Author]

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