Forum Replies Created
-
AuthorPosts
-
4plexowner
Participanthttp://www.321gold.com/editorials/russell/russell040809.html
Richard Russell talks about the bull market in gold and the bear market in equities
Richard is 83 and has been watching the markets pretty much daily for 50+ years – his thoughts might be worth paying attention to
4plexowner
Participanthttp://www.321gold.com/editorials/russell/russell040809.html
Richard Russell talks about the bull market in gold and the bear market in equities
Richard is 83 and has been watching the markets pretty much daily for 50+ years – his thoughts might be worth paying attention to
4plexowner
Participanthttp://www.321gold.com/editorials/russell/russell040809.html
Richard Russell talks about the bull market in gold and the bear market in equities
Richard is 83 and has been watching the markets pretty much daily for 50+ years – his thoughts might be worth paying attention to
4plexowner
Participanthttp://www.321gold.com/editorials/russell/russell040809.html
Richard Russell talks about the bull market in gold and the bear market in equities
Richard is 83 and has been watching the markets pretty much daily for 50+ years – his thoughts might be worth paying attention to
4plexowner
ParticipantI never took the time to understand cap rates – bought everything based on gross rent multiplier (GRM) where price = GRM x annual rents
when I started buying in 1998 GRMs for 2-4 units west of I-5 were still in the 10ish area – bought a Mission Beach 4plex in 1999 for 11.5 GRM and thought I was paying too much but rents were rising quickly at the time – by the time I stopped buying in 2001 GRMs were 14 and 15 even in areas like North Park – wasn’t uncommon to see properties listed as high as 21-22 GRM (dreamers!)
in 1998 and 1999 I could ALMOST but not quite make the numbers work (break even or positive cashflow) but rents were rising and I had the income to cover negative cashflow – I figured I’d get to breakeven cashflow within a few years
by 2001 it was obvious to me that prices had gotten out of control – there was no way to make the numbers work or even to pretend that they might work at any point in the near future – I started selling my properties in 2002 and was out of the rental market by 2006 – one of my properties sold at 18 GRM
4plexowner
ParticipantI never took the time to understand cap rates – bought everything based on gross rent multiplier (GRM) where price = GRM x annual rents
when I started buying in 1998 GRMs for 2-4 units west of I-5 were still in the 10ish area – bought a Mission Beach 4plex in 1999 for 11.5 GRM and thought I was paying too much but rents were rising quickly at the time – by the time I stopped buying in 2001 GRMs were 14 and 15 even in areas like North Park – wasn’t uncommon to see properties listed as high as 21-22 GRM (dreamers!)
in 1998 and 1999 I could ALMOST but not quite make the numbers work (break even or positive cashflow) but rents were rising and I had the income to cover negative cashflow – I figured I’d get to breakeven cashflow within a few years
by 2001 it was obvious to me that prices had gotten out of control – there was no way to make the numbers work or even to pretend that they might work at any point in the near future – I started selling my properties in 2002 and was out of the rental market by 2006 – one of my properties sold at 18 GRM
4plexowner
ParticipantI never took the time to understand cap rates – bought everything based on gross rent multiplier (GRM) where price = GRM x annual rents
when I started buying in 1998 GRMs for 2-4 units west of I-5 were still in the 10ish area – bought a Mission Beach 4plex in 1999 for 11.5 GRM and thought I was paying too much but rents were rising quickly at the time – by the time I stopped buying in 2001 GRMs were 14 and 15 even in areas like North Park – wasn’t uncommon to see properties listed as high as 21-22 GRM (dreamers!)
in 1998 and 1999 I could ALMOST but not quite make the numbers work (break even or positive cashflow) but rents were rising and I had the income to cover negative cashflow – I figured I’d get to breakeven cashflow within a few years
by 2001 it was obvious to me that prices had gotten out of control – there was no way to make the numbers work or even to pretend that they might work at any point in the near future – I started selling my properties in 2002 and was out of the rental market by 2006 – one of my properties sold at 18 GRM
4plexowner
ParticipantI never took the time to understand cap rates – bought everything based on gross rent multiplier (GRM) where price = GRM x annual rents
when I started buying in 1998 GRMs for 2-4 units west of I-5 were still in the 10ish area – bought a Mission Beach 4plex in 1999 for 11.5 GRM and thought I was paying too much but rents were rising quickly at the time – by the time I stopped buying in 2001 GRMs were 14 and 15 even in areas like North Park – wasn’t uncommon to see properties listed as high as 21-22 GRM (dreamers!)
in 1998 and 1999 I could ALMOST but not quite make the numbers work (break even or positive cashflow) but rents were rising and I had the income to cover negative cashflow – I figured I’d get to breakeven cashflow within a few years
by 2001 it was obvious to me that prices had gotten out of control – there was no way to make the numbers work or even to pretend that they might work at any point in the near future – I started selling my properties in 2002 and was out of the rental market by 2006 – one of my properties sold at 18 GRM
4plexowner
ParticipantI never took the time to understand cap rates – bought everything based on gross rent multiplier (GRM) where price = GRM x annual rents
when I started buying in 1998 GRMs for 2-4 units west of I-5 were still in the 10ish area – bought a Mission Beach 4plex in 1999 for 11.5 GRM and thought I was paying too much but rents were rising quickly at the time – by the time I stopped buying in 2001 GRMs were 14 and 15 even in areas like North Park – wasn’t uncommon to see properties listed as high as 21-22 GRM (dreamers!)
in 1998 and 1999 I could ALMOST but not quite make the numbers work (break even or positive cashflow) but rents were rising and I had the income to cover negative cashflow – I figured I’d get to breakeven cashflow within a few years
by 2001 it was obvious to me that prices had gotten out of control – there was no way to make the numbers work or even to pretend that they might work at any point in the near future – I started selling my properties in 2002 and was out of the rental market by 2006 – one of my properties sold at 18 GRM
April 9, 2009 at 6:34 AM in reply to: Will rents create a price floor despite the mini rental bubble? #3783144plexowner
Participant“national historic low average size household combined with a historic oversupply of housing in what could be a historic recession”
along with a significant shift in demographics as the baby boomers retire (or try to retire) over the next 10 years or so – many of these people are counting on the equity in their real estate to fund their retirement – accessing that equity could put many more ‘excess’ housing units on the market
April 9, 2009 at 6:34 AM in reply to: Will rents create a price floor despite the mini rental bubble? #3785924plexowner
Participant“national historic low average size household combined with a historic oversupply of housing in what could be a historic recession”
along with a significant shift in demographics as the baby boomers retire (or try to retire) over the next 10 years or so – many of these people are counting on the equity in their real estate to fund their retirement – accessing that equity could put many more ‘excess’ housing units on the market
April 9, 2009 at 6:34 AM in reply to: Will rents create a price floor despite the mini rental bubble? #3787734plexowner
Participant“national historic low average size household combined with a historic oversupply of housing in what could be a historic recession”
along with a significant shift in demographics as the baby boomers retire (or try to retire) over the next 10 years or so – many of these people are counting on the equity in their real estate to fund their retirement – accessing that equity could put many more ‘excess’ housing units on the market
April 9, 2009 at 6:34 AM in reply to: Will rents create a price floor despite the mini rental bubble? #3788164plexowner
Participant“national historic low average size household combined with a historic oversupply of housing in what could be a historic recession”
along with a significant shift in demographics as the baby boomers retire (or try to retire) over the next 10 years or so – many of these people are counting on the equity in their real estate to fund their retirement – accessing that equity could put many more ‘excess’ housing units on the market
April 9, 2009 at 6:34 AM in reply to: Will rents create a price floor despite the mini rental bubble? #3789444plexowner
Participant“national historic low average size household combined with a historic oversupply of housing in what could be a historic recession”
along with a significant shift in demographics as the baby boomers retire (or try to retire) over the next 10 years or so – many of these people are counting on the equity in their real estate to fund their retirement – accessing that equity could put many more ‘excess’ housing units on the market
-
AuthorPosts
