Buying more real estate even with higher prices

[Bearded Man]

I forget which forum someone responded to one of my threads, and I haven't been able to find it since, but the comment was something to the effect of timing the market blah blah, you could be leaving money on the table as prices keep rising, etc. I wish I could find the post, but in any case, I had been debating for the past couple years whether I should buy another house or not and I'm glad I did. I didn't buy all but maybe one at the exact bottom (by chance) but having bought in late 2010, 2012 and 2014, I've still had massive gains on my real estate and still cash flow friendly enough.

As of late I had been debating once again whether to wait or buy another house and I've decided to buy another and have one pending. It was a relatively easy decision in that I may have paid more for my last house than I could have paid 3 years ago, but I still made almost 100% of my down payment back in one year just through appreciation and principle pay down since buying it. I still expect a couple years of upside as well, so...

[arebelspy]

Weren't you just today posting about your poor yields and why you should sell for a REIT?

You seem really bipolar on the "get more" or "sell 'em all" thing, flip flopping even on--literally--the same day.

I'd recommend you do neither (buying or selling) for now, but sit down and look at the pros and cons of owning RE versus whatever else you'd invest the proceeds in, look at acceptable minimum returns, potential risks, what your portfolio would look like if you kept as-is, if you bought more, if you sold all, etc. and make a solid plan. Not just flip flop from very opposite ideas, but come up with criteria, goals, and a plan. And then execute it.

Good luck!

[Bearded Man]

Weren't you just today posting about your poor yields and why you should sell for a REIT?

You seem really bipolar on the "get more" or "sell 'em all" thing, flip flopping even on--literally--the same day.

I'd recommend you do neither (buying or selling) for now, but sit down and look at the pros and cons of owning RE versus whatever else you'd invest the proceeds in, look at acceptable minimum returns, potential risks, what your portfolio would look like if you kept as-is, if you bought more, if you sold all, etc. and make a solid plan. Not just flip flop from very opposite ideas, but come up with criteria, goals, and a plan. And then execute it.

Good luck!

Yep, I'm bipolar. It's not that you don't know everything or that I own more than one rental and am considering re-balancing some into other investments due to capital expenditures and things that are taking more time on the older houses while investing in others that are more profitable. It's that I'm bipolar. Wow, even the mods here are insulting here.

I guess if I post threads exploring options of selling and putting the money into a REIT or 10-31 exchanging into two leveraged properties and ask for opinions and do different things with different cash flows and strategies for equity growth it must be that I'm bipolar.

[iamlindoro]

Yep, I'm bipolar. It's not that you don't know everything or that I own more than one rental and am considering re-balancing some into other investments due to capital expenditures and things that are taking more time on the older houses while investing in others that are more profitable. It's that I'm bipolar. Wow, even the mods here are insulting here.

I guess if I post threads exploring options of selling and putting the money into a REIT or 10-31 exchanging into two leveraged properties and ask for opinions and do different things with different cash flows and strategies for equity growth it must be that I'm bipolar.

I am pretty sure that the inference wasn't that you are clinically bipolar, but rather that your opinions seem to run the entire gamut (intellectually and emotionally) from abject misery to abject joy, and from pessimism to wild enthusiasm, when it comes to real estate.  Arebelspy isn't the first to comment on this, either.  It seems like the landlording is very trying for you, and my thought is that it can't possibly be good for your peace of mind or health.

More than anything, the message of this site is that we should seek FI/RE for our wellbeing, and the wellbeing of others.  It sometimes seems that your chosen investment is working against that purpose.  I don't think anyone here wishes you ill, despite the scorn you sometimes show when you get answers you don't like.  If anything, I am concerned for you.

[woopwoop]

Wow, even the mods here are insulting here.

Then fuck off already. Every time I see a post by you, you're getting into some bullshit argument and getting all butthurt about posts. Maybe it's not the forum members or mods who are all wrong when you're constantly picking fights and getting offended. I don't even know what this post was supposed to be about since you've already made your decision, sounds just like bragging to me without any possibility for discussion.

MOD EDIT: Forum rule #1.

[onlykelsey]

It's obviously not perfectly rational, but for me when I first bought, the "forced savings" aspect of owning my home was definitely appealing.  I wasn't really at the point where I could trust myself to save an extra few grand in a taxable account, but I certainly wasn't going to default on my mortgage.  Sometimes I think that side of real estate investing is underestimated.  Maybe it's worth it to you.

[GrayGhost]

When I am deciding whether or not to buy another real estate investment, my thinking process is something like this.

Will the purchase meet the 1% and 50% rules?
Is the risk commensurate with the expected rewards?
Does it fit into my general financial plans?
Is it worth the headache and hassle?

The question you seem to be asking is if you're too heavy into real estate, without enough other assets, and you are intrigued by the idea of more investment in real estate, but hesitant about putting all of your eggs into one basket. These are highly legitimate concerns. Real estate is fun for me and I love everything about it, however it is only a small part of my financial portfolio, because I see it as risky.

[arebelspy]

Weren't you just today posting about your poor yields and why you should sell for a REIT?

You seem really bipolar on the "get more" or "sell 'em all" thing, flip flopping even on--literally--the same day.

I'd recommend you do neither (buying or selling) for now, but sit down and look at the pros and cons of owning RE versus whatever else you'd invest the proceeds in, look at acceptable minimum returns, potential risks, what your portfolio would look like if you kept as-is, if you bought more, if you sold all, etc. and make a solid plan. Not just flip flop from very opposite ideas, but come up with criteria, goals, and a plan. And then execute it.

Good luck!

Yep, I'm bipolar. It's not that you don't know everything or that I own more than one rental and am considering re-balancing some into other investments due to capital expenditures and things that are taking more time on the older houses while investing in others that are more profitable. It's that I'm bipolar. Wow, even the mods here are insulting here.

I guess if I post threads exploring options of selling and putting the money into a REIT or 10-31 exchanging into two leveraged properties and ask for opinions and do different things with different cash flows and strategies for equity growth it must be that I'm bipolar.

No offense was intended.

I was in the real estate section, read a post by you asking if you should sell all of them and put it into REITS (due to fear of meth houses), and talking about your low yields and how you'd get more dumping it all into O, and then read this post about buying more as literally the next post I read.

So it struck me (though it has struck me before, your proclivity to jump from "buy more!" to "sell them all!"), and I thought it might be helpful to comment.

My apologies if you took offense.

My comment was genuine though.  I think you should slow down, and think about why you are investing in real estate, and what your goals are for your portfolio (and not just monetary goals, but sleeping at night/comfort goals, etc.), and how real estate, or some other investment, will help you achieve them.