These myths are certainly just that, myths. I once had a tenant tell me that the kitchen sink was clogged, I asked if she put anything down the drain that should not be there. I was told “no, but sometimes I wash my hair in the sink.” I responded “you know the bathroom has a shower?” Tenants will never let you down with dumb stuff they do to/in your property. 100% make sure you have many thousands of dollars saved for repairs because expensive things (Hvac, water heater, etc) will absolutely break due to improper use.
Finally, I concur with the $1MM into treasuries. If/when the market pukes you could buy longer dated treasuries with part of the money and use the interest coupon to offset a future mortgage payment (or fund those pesky repairs).
There's a flip side to that, though. I've always been a good tenant but have landed a lot of terrible landlords, including one who was fine until my toilet started backing up and discharging sewage from the shower drain. He refused to do anything but put Drano down the toilet a couple of times, for a year. Finally I requested in writing that the toilet be fixed. He brought in a pretend plumber who I later found out was a friend of his, not even a plumber, who told him to put Drano down it again. Finally I threatened to make a complaint with the landlord and tenant board. He initially still refused to fix it but finally came in and dug out masses of dirt and tree roots from under the toilet, after which it magically started working again. But he claimed he'd found a T-shirt down there, accused me of flushing the shirt and causing the entire problem 🙄 That's just ONE bad landlord story, I'm currently in the middle of my third...
Saying over time we might have a black death with 1/3 of the population dying is kind of silly. 1. Buy when the market is in a lull and people say it will never go up again. Inflation is inexorable. 2. Don’t buy in a screaming hot market when everything costs way more than it should. 3. I have had rentals for decades. Definitely the beat investments ever. Most tenants are good. 4. Own five rentals. Pay them off over 15-18 years. Life is easy. Own 10, do the same and life is really easy. PAY THEM OFF. Everyone was borrowing and leveraging like crazy over the last 10 years. I was paying down my debt as fast as I could.
You forget you leverage your money and get revenue to pay off your mortgage. I also make way more money in down markets than up markets. Try to make money in the stock market when the market is falling.
The government is not going to seize your home over global warming. They *might* hollow out the concept of ownership, but eminent domain is not a serious concern. Neither is adverse possession. Squatters don't tend to seize the home title, they just either trash the house and move on or live in it for multiple generations paying a rent-controlled rate.
These myths are certainly just that, myths. I once had a tenant tell me that the kitchen sink was clogged, I asked if she put anything down the drain that should not be there. I was told “no, but sometimes I wash my hair in the sink.” I responded “you know the bathroom has a shower?” Tenants will never let you down with dumb stuff they do to/in your property. 100% make sure you have many thousands of dollars saved for repairs because expensive things (Hvac, water heater, etc) will absolutely break due to improper use.
Finally, I concur with the $1MM into treasuries. If/when the market pukes you could buy longer dated treasuries with part of the money and use the interest coupon to offset a future mortgage payment (or fund those pesky repairs).
There's a flip side to that, though. I've always been a good tenant but have landed a lot of terrible landlords, including one who was fine until my toilet started backing up and discharging sewage from the shower drain. He refused to do anything but put Drano down the toilet a couple of times, for a year. Finally I requested in writing that the toilet be fixed. He brought in a pretend plumber who I later found out was a friend of his, not even a plumber, who told him to put Drano down it again. Finally I threatened to make a complaint with the landlord and tenant board. He initially still refused to fix it but finally came in and dug out masses of dirt and tree roots from under the toilet, after which it magically started working again. But he claimed he'd found a T-shirt down there, accused me of flushing the shirt and causing the entire problem 🙄 That's just ONE bad landlord story, I'm currently in the middle of my third...
Oh Susanna, you need to stop flushing clothes down the toilet you silly goose.
🤣
Really enjoyed this honest take - thank you!
Saying over time we might have a black death with 1/3 of the population dying is kind of silly. 1. Buy when the market is in a lull and people say it will never go up again. Inflation is inexorable. 2. Don’t buy in a screaming hot market when everything costs way more than it should. 3. I have had rentals for decades. Definitely the beat investments ever. Most tenants are good. 4. Own five rentals. Pay them off over 15-18 years. Life is easy. Own 10, do the same and life is really easy. PAY THEM OFF. Everyone was borrowing and leveraging like crazy over the last 10 years. I was paying down my debt as fast as I could.
Strawman argument.
Real estate has experienced serious growth rarely in history. There is no reason to think that this time is different.
You forget you leverage your money and get revenue to pay off your mortgage. I also make way more money in down markets than up markets. Try to make money in the stock market when the market is falling.
“ Everyone was borrowing and leveraging like crazy over the last 10 years. I was paying down my debt as fast as I could.”
BINGO!
Maybe flint is a bad investment. But anywhere people want to live: cities and nice suburbs, real estate only ever goes up.
False.
The government is not going to seize your home over global warming. They *might* hollow out the concept of ownership, but eminent domain is not a serious concern. Neither is adverse possession. Squatters don't tend to seize the home title, they just either trash the house and move on or live in it for multiple generations paying a rent-controlled rate.
It’s good to know that you can perfectly forecast the future.