Quote:
Originally Posted by Crawford
The problem is that you buy it for (say) 245k, and you sell it for 260k a decade later. So what was the point?
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Because appreciation isn't the only way to make good money in real estate. It's more of a get rich quick scheme that is basically all speculation. Chicago (and most of the midwest) is a cash flow market where you can net positive cash flow in excess of 10% in the first year and that generally just goes up each year given costs are mostly fixed (if you have 30-year fixed mortgage).
In the fast-growing speculative markets it is often hard or impossible to break even with rental income. You are entirely banking on the current growth trend continuing.