Major apartment developer: 'There is an acute crisis headed our way' say it ain't so...

Clubber Lang said:
Really?
So a handful of hours in a full year isn’t “passive”?

The IRS doesn’t agree with you-

https://en.m.wikipedia.org/wiki/Passive_income

“Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.”

“Some examples of passive income are:

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The IRS definition is not relavent to the the discussion. Per you're own quote you are acting on RE agent, hireing handy men, making decisions, etc. I own some commercial RE with a similar profile...not passive.

Owning IYR is passive.
 
i960 said:
We went from 2.4 to 2.9 in less than 2 months and aside from recent equity volatility the trend doesn't look massively disrupted.
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Agreed. Also Fed shrinking their balance sheet, plus recent trend in rate hikes, as well. Lets see what Powell does. He's untested, and coined a Republican-friendly dove...
 
sss12 said:
The IRS definition is not relavent to the the discussion. Per you're own quote you are acting on RE agent, hireing handy men, making decisions, etc. I own some commercial RE with a similar profile...not passive.

Owning IYR is passive.
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OK we agree to disagree lol

Best of luck to you
 
srinir said:
Self manage is similar to running a small business and/or doing full time job. Risk profiles are also different. Leverage ratio is also lot higher and has unsystematic risk than total stock market.

Self managed investment properties are not a passive investment they are comparing to like total stock market, Treasury bonds and bills.
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Not unlike us traders on ET, not a passive investment even if you trade REIT.:finger:

Anyway, I do understand your points.

Regards,
 
i960 said:
Yeah so let me buy a call option your house where you carry the majority of the risk and then market it as some kind of thing helping you buy a home. This shit sucks badly and is symptomatic of a market that is no longer structurally sound nor respectful of the fact that one's primary residence is a liability, not an investment.

View attachment 182768
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Wait, da fu*$%#?!??!!?!!

An undated covered call on your home? How stupid could someone really be?
 
Yes, correct! In cities where supply and demand is an issue, (Boston, NYC, San Fran) it will not be a problem for inventory to be absorbed. BUT, in cities over built with new inventory and no housing crunch, it will not only crush developers trying to sell for a reasonable profit, but when they're forced to keep it as rental property to ride out the correction, it will crash the rental market prices for landlords holding older inventory... Basically what happened to me when I expanded from Boston into Providence, RI in the 2000's, where it was just a bedroom community/city, no job growth etc. When 2008 came, all those new developments rented their brand new units for the same market rent prices we had on the 2-3 families, leaving us to mark down our rents by 30% just to try and get bodies in the door. Those of us who had 50% equity and lower mortgages could ride out that problem, while those of us at only 20-25% equity and a higher mortgage went into short sale/foreclosure......Because the problem is 2 fold. Yes, your market rents go down, BUT ALSO many people are laid off from their jobs, and they cant pay rent, and so your vacancies go up too while also taking in lower market rents!! NOT a good situation.....And no, they don't teach you this in business school, nor in those RE Guru classes, lol.. This last recession was similar to the great depression. Unlike previous recessions when you could ride it out, this one either crushed you or you got out just barely alive.
 
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