Is Now a Good Time to Invest?

I am curious on your positions now, given the uncertainty of future economic conditions, I am feeling like, know when to hold them is a smart idea for a few months. What are your thoughts? So I used to think this back in 2012 and then 2015. And then 2016 and then 2018 and 19 as I was buying properties that cashflow, as we said on the last slide, you only buy properties that are positive cashflow and can pay professionals to run it for you.

If you don’t have enough money for vacancy repairs, cap, ex professional property managers and the occasional oops. You should have bought the property. You’re not cashflow positive in the true sense of the word, just because you’re renting a property out for $2,000 and your mortgage is 1500. Doesn’t mean you’re cash flowing 500 bucks.

That is absolutely wrong. In fact, in that kind of situation, probably negative cashflow when you’re accounting for real repairs, expenses, maintenance cap, ex vacancy, and property management. So if the way I see it, like most people don’t invest like this, right? They don’t invest for cashflow, which don’t found this me.

But when you’re investing for cashflow, I don’t see any reason why the economy is going up and down. I mean, you’re just kind of dollar cost averaging. You’re just picking up more and more assets that make money on a monthly basis. Most cashflow investors are pretty immune to the economy and after going through a pandemic and seeing my collections.

Pretty much across 3,500 units stay above 90% where breakeven point is in the low fifties and sixties. I mean, I’m pretty confident that this workforce housing investing for cashflow is the way to do it a lot better than investing in something silly, like Airbnb short-term rentals or something like commercial storefronts, where the restaurants go out of business.

I think we’ve seen the strength of workforce housing. People need a place to live.