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Originally Posted by woj
Very true, if for example you put down 100k and buy some real estate worth 1 million, and then the price of that real estate drops by 10% (far from impossible) you will be left with ZERO equity, and if shit turns bad, and the prices drop by 15%, you will end up owing 50k...
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if you buy quality commercial properties with a cap rate over 10% you will be cash flow positive even if interest rates rise -- so over the long term you will be ok
Real estate should not usually be looked at as a speculative short term venture