I’m genz, unless my startup kicks off I’m kicking rocks.
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Till then it’s the pod and bugs for you. 
That is the biggest bummer …
But i keep saying & thank God everyday that I’m not looking for a house in this market
I just want to be the stereotypical millennial and get a big yard for my dogs. Screw kids and school systems, my dogs need a bigger yard.
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Yeah you guys have it bad for sure. I bought my first house at 24. Triplex for $250k, put $50k in and lived in a 1br apartment free and made $2000/mo profit after paying all bills. That was 2007, just sold it for $625k and it was grossing 7k a month in rent.
It’s all about timing. I got into real estate right after a crash and was able to buy with almost nothing out of pocket. Used equity from one property to buy the next and so on.
For anyone young I still suggest doing the same. Buy a multi family, 3.5% down fha loan. Live there a year as legally required, rinse and repeat. You won’t make money but you can still live for free doing this in a lot of markets. The largest expense is usually housing, wipe that out and you’re well ahead of most people. Better yet get a few roommates and live in a larger unit in your multi family while you’re young.
Real estate still makes more millionaires then anything else. No other investment will the bank finance for you like real estate.
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These flips with those numbers are suggesting a collapse in the bubble car market is coming sooner than later. And when it comes it will be spectacular!!!
How many months have you be talking about the sky falling for?
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A few months now…
Its ot easy to predict the exact moment and time, but let’s be real here, the entire market, not just used cars and new, but the entire market is at extremes and ripe for a significant drop. And it will happen.
“A few”?
“When will then be now?” “Soon”
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You’re going on year 2
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Well when you have the federal reserve handing out trillions of dollars to prop the markets up of course my prediction will keep failing. The federal reserve has been backstopping the markets now for many many years. If they stop giving wallstreet free handouts you would see an immediate collapse across all economies around the world.
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Pelosi capital —-if you didn’t hear - she just bought a house few miles away from the dooonaaald in palm beach for retirmundo
I have had this same discussion with few young millennials who are in the market for a new house but the biggest obstacle they tell me they’re facing are their partners who want the “stereotypical millennial” house that @wam22 mentioned.
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Yep and once they buy that their DTI is effed and if they can get a rental, they have to put 25% down.
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I don’t 100% disagree but here is an example. A move-in ready triplex (2 3bed/2ba and 1 1bed/1ba) in Chicago is $600k. Assuming I can get $4500/mo, it would take 12 years to be cash flow positive without factoring in insurance, maintenance, interest, etc. Lets round the number up to $1 million for total expenses with interest over 30 years. What is the house worth? No one know. All I know is if I sell it for $1 million, I break even. Forgot to add this - 18 years to make $1 million. So 12 years of pure profit adds up to $650000.
Or I take my 3.5% down payment with an average return of 6% and I spread the $400k I would have spent on interest/upkeep over 30 years and now I have $2.9 million with no tenants.
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Excellent point, but you are taking one single unit into consideration. The whales in real estate use any equity and/or collateral as leverage for additional buying power. Of course nobody is going to see a steady 6% annualized return at the end of a 30yr term on a single property when factoring maintenance, expenses (seen and unforeseen), and other expenditures.
Real estate is a great investment when bought right. This market is not right.
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I understand how the whales do it or how to become a whale, especially taking a loan out against an existing property/collateral to use as a down payment for a new property and continue that cycle. The saying is that the first million (or billion) is the hardest to make and then it is easy after that.
But yes, it is a tough market for anything right now and I am not ready to take a potential six figure haircut as a learning lesson when there are still student loans (I married into 90% of it thanks to my wife) to pay off.
This is not the market where you buy your 1st property either for personal use or to start a rental real estate empire.
The current conditions are suitable for people already with built-in equity which have ballooned & they are taking it out to buy more properties.
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This is all wrong. I can recommend a few books if you want. You shouldn’t be paying anything for upkeep, interest etc, and with tax deductions you likely will even cash flow. It’s not easy to find the right property, you gotta search and add sweat equity, but they can be found.
Chicago I would likely avoid though. Same issues as Philadelphia, as in the City is broke. My taxes went from 1500 in 2007 to 8k in 2015 and then there’s other taxes they hit you with. Once the state told me I couldn’t evict non paying tenants, that was it for me…
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Send me some recommendations. Always down for learning more.