Real estate investors worry about competition in certain areas

“There are still plenty of markets with decent cash flow. Midwest is best example. Biggest difference between stocks and RE is that a tenant isnt buying your stocks for you. Its not really a fair comparison. [re: How’s everyone feeling?]”

“I'm a long-term buy-and-hold investor. Arguably, the most important part of which is choosing your location. I want to fact-check my current belief and get your opinions, whether they support or go against it. My belief is that the most popular metros that people have historically moved to (NYC, SF, LA, Boston, Miami, DC, etc) will continue to grow and outpace the rest of the country over the long-term. I don't care about the recent migrations to TX, AZ, etc. I'm talking about the id”

“Yaaaa I wish I could find a nice starter home for around $350k-$400k. In the PNW a new development home is probably running between $550k-$700k.”

“We rolled into our dream house. That house was always meant to be short term.”

“And for the big companies they make their real money from holding onto property long term and then flipping it.”

“They’re downvoting, but you’re right. Same as the share market and gambling markets”

If you put it at a lower price may start a bidding war...

“Congrats on the success. Very interesting perspective. I'm in one of the most expensive cities in the US, average home sells for a million. Nowhere near buying one of those cash. Doing what I can to maximize retirement contributions and save what I can in the interim. Enjoy life in SC in your home and happy retirement :)”

“There is an absolute flood of posts all over this platform and others that seem to basically say "my hypothesis is/was that because rates are high and all kinds of other headwinds, houses must start selling for less" and then go on to bemoan that this hypothesis has been proven wrong month, after month, after month. I would love to save everyone (hopefully) some time, effort and emotional distress by just saying flat out, markets are irrational. They can trade in irrational directions”

“Especially when the place is still kind of shit and the real estate is being bought by investors who think it “might” be worth something someday”

“First, educate yourself in the facets of REI. Sourcing. Financing. Rehab management. Exits. I wouldn't jump into anything for real money until you would invest in you if that makes sense. Until you would be able to stand in front of you and impress the socks off yourself with what you know, with your connections, access. Most people lose in the beginning because they rush into any deal thinking its real estate, how could I lose? When really the question should be, how do I win? This is all a”

“People fail at REI because they make poor guesses of future results. The maxim, "You make your money when you buy" should be the the first rule any successful small investor adheres to. You making money on the assumption that something in the future changes is pure speculation. In 2021, 2022 realtors used the phrase love the house, date the rate. The annual average of rates in 2022 was 5.5%, in 2026 it's hovering around 6.4%. If it didn't cashflow in 2022 you couldn't refin”

“And if you bought in much of Florida you’d be kicking yourself. RE can work, much like individual stocks can work. It can also not work.”

“the window that seems to work is during their due diligence, before they've closed. at that point they're still modeling the deal and a piece they don't want is a reduction in what they need to finance. after closing, the parcel is already in their pro forma and carving it out means redoing the math. what gets you taken seriously is being specific. exactly which portion, drawn on a plat, with a number attached and proof you can pay without financing contingencies. developers deal wit”

I'm not the one out here whining about how competing is too hard.

“They only reason they would sell that chunk is if they think they can't make money on it. And if they can't, what makes you think you can?”

“Speaking as a developer. If they have acquired the land they very likely have a concrete plan for some, but probably all of, the land. And therefore likely will not want to sell to you. With that said it’s possible they don’t want all of the land and would sell you a portion of it. Definitely approach as soon as possible, but don’t get your hopes up. They bought it for a reason.”

Exactly, same here, that’s how most successful investors do it!

“Think of it in math terms: diversifying across markets doesn't raise your expected return, it narrows the range of outcomes. With everything in one market, your risks are correlated — one local downturn, one insurance spike, one property tax reassessment hits all your units at once. So the question isn't really 'how many in one place,' it's whether your reserves can survive your market's worst 12 months applied to everything simultaneously. The tradeoff is that at small s”

“Comparing properties to an ETF is apples to oranges. Diversification in real estate isn't as straightforward, you can't liquidate a property overnight like shares. Stick to markets you know well.”

“I think it's fine if the population is steady and the industry is diversified. So for example if the area has a train station, hospitals, major university, multiple MAJOR companies, and easy access to other major areas I think you're going to be fine. IMO this is actually optimal for mom n pop landlords. Only thing to worry about it government policy turning against you.”

“Concentrating in one market means you know it cold, comps, renters, contractors, which is a real edge, but you're exposed if that one local economy turns. Diversifying protects you from a single-market downturn but means relying more on property managers and less on boots-on-the-ground knowledge. Most investors I know start concentrated to build expertise and cash flow, then diversify once they've got a few properties and some cushion. I broker in Williston, ND, an oil market, so I see t”

“Comparing properties to an ETF is a bit of a reach. Real estate isn't as liquid or diversified as stocks. It's more about location-specific factors than spreading risk across markets.”

“Real estate isn't an ETF. Spreading a few houses across eight cities doesn't lower risk, it multiplies management overhead. You get zero vendor leverage with contractors and eight different code environments to track. Local market depth usually beats thin geographic spread.”

“How do you achieve the efficiencies of scale by diversifying across multiple markets? Sure there is a number, but it's beyond what most SFH investors will ever achieve. There may be reasons to diversify beyond risk avoidance but those are typically specific to an investor and their personal choices.”

“Do you buy in STL? I’m looking for buyers on some turnkey properties I have.”

Where are you at right now with your real estate portfolio?

“I think you're in a perfect spot for investing in real estate. The interest rates are so high these days, you can't make most deals cashflow, so creative financing is the key. See if you can form a relationship with some banks, and some realtors to find investors who are ready to sell their portfolios. Most people who are my age and have been in the industry for 25+ years are tired, but we don't want to get nailed on capital gains, so someone young with good financial management sens”

“Most of the thread's debating which strategy, but with only a couple grand saved, the cash to close should narrow the choices first. That FHA point above matters here. On a triplex or quad FHA runs a self-sufficiency test and also wants reserves in your own funds after closing - gift money doesn't count toward it. A duplex skips both. So a quad brings in more rent to cover your payment but needs a bigger cash cushion in the bank before you can close which is the exact thing you're st”

“Eh, I can pick up a house right now for $35k, it would cost me about $30k to rehab it.... and it'd be worth about $300-$400k when I am done. It's not about luck. It's about being willing to learn new skills and being willing to put in the effort. This is exactly how I started, knowing nothing, just being wiling to do what it took to have something of my own instead of renting. Fresh out of bankruptcy too. Now I'm at 27 houses... But I'll bet you'll sit there and say &quot”