Originally Posted by
Gunfighter
The S&P returned 462% since 2006 or 9.88% compounded annually. It would have been a winning trade given that mortgages over that period ranged from 3-7%.
An even better play would have been gradually rolling the market position into RE over that period. A hypothetical pilot could have acquired one property per year over the decade from 2006-2015 and built a portfolio of income producing property that exceeds their Delta income. My only regret is that I didn't fall victim to the scam in a bigger way.
Sounds really good. Wish I had done this. But there are some downfalls not discussed- what happens when there is a downturn and your renters can’t pay the rent? You evict them right? Most states that takes at least two months. So you are out those two months rent. Then you have to rehab the property and get new renters - another month at least. Then in a downturn you likely have to lower the rent. Will that now cover you expenses? Maybe. What if this happens on multiple properties at once? Multiple mortgages being paid with no income plus the renovation costs. I have managed properties before and seen this so yes very possible even likely in a downturn.