Well I have land and rental property. I have seen the values go up and down. Here are some high points I have learned:
1) Do not buy any rental property expecting it to cash flow to make any loan payments. What I mean by this is, DO not have to have it rented to make the payments on it.
2) You have 10 properties and only 2 paid for. You DO not need anything else to put money in right now. PAY THE darn mortgages OFF. ASAP!!!!! What happens if the economy tanks and takes your self employment income down to rock bottom??? Than just to make it even more fun at the same time half your rentals go vacant???? Could you meet your payment and living costs???
3) You need at least six months of enough cash to pay ALL of your bills/payments, this has to be readily available. That means you can access it in less that 48 hours. A years worth is even better.
4) You did not say what type of properties you have. I am guessing rental homes or apartments. If this is the case do not think the real estate slump of the last 4-5 years can not go south again. It can very easily. Housing costs are still out of the reach of many people. This is getting worst not better. This economy is not rolling along. It is limping along. The total number of people in the work force that are unemployed is much larger than the government numbers tell. This effects people's ability to pay rent or buy homes.
So you need to shore up what you have started. The TV show/seminar guys that tell you to just keep buying more and more, that mortgages are just a tool are fools an they get taken out when ever there is a major market correction.
Remember that your lenders are all smiles now but if anything happens they will cut you loose so fast your head will spin!!! Non performing loans now are under much closer FDIC scrutiny. The banks do not want you around for long if your not making payments. It looks too bad to their auditors. So they will dump you faster than they may have in the past.
It sounds like you have been buying since the real estate market crashed a few years ago. Some areas have rebounded back. I just do not think that any of them are in real healthy shape. So prepare yourself for a down turn. If it does not happen then GREAT for you. If it does then your ready to pull through.
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