Quote:
Originally Posted by stacey
Not sure which normal market you are in...  |
My observation is made on life the includes pre 2005 house craze. Anyone under 30 hasn't seen normal. Unless they were in to it as teens. They have only seen a rising housing orgy fueled by cheap credit.
When things are normal, real estate investors operate with positive cash flow. Try doing that right now. Even with 20% down payment you are most likely to have negative cash flow.
In this article you have someone who is getting equivalent of a 3% return and a negative cash flow on a house. If that's the norm then why is RE considered a good investment?