Don't wanna throw in the towel
July 29, 2006 3:05 PM Subscribe
Out-of-the-box ideas for buying income real estate during the bubble?
posted by Gordion Knott to Work & Money (8 answers total) 2 users marked this as a favorite
I'm a small fry investor in income real estate (a few apartments), and have been sidelined from buying due to an unpleasant reason: prices are so frikkingly, vertigo-inducingly high that I couldn't scratch out a good rental flow even with the best of loan terms.
What's the most favorable approach to this conundrum? Buy real estate in out-of-the-way spots, like the Midwest, that aren't booming yet? Switch to stocks and bonds? Fixer-uppers and foreclosures? Distressed properties? Weird real estate like self-storage? Or simply wait for the bubble to collapse?
Now that income real estate brings in returns equal to CDs, some wags are saying that buying real estate for tenant income is doomed. I like to be hopeful. Any ideas?