I am a new real estate investor so any advice or help would be great.
With a few other investors we are looking into acquiring 10 cottages for 1.5 million. They would be operating in a positive cash flow and and still under market rent. I live in San Diego and am a little worried about te impedning bust that everyone sys will happen. If I am having positive cash flow and can afford to hold on for long term if necessary, do I have any major concerns with a market bust.
I am better off looking in a different state?
Winni-
Here’s a letter I wrote to the Editor of Inman News (an online news agency w/access to millions of real estate professionals). It was in response to an article written by a PMI company out of California (PMI’s a thing of the past isn’t it? 
).
Regarding the article; “Coastal areas run highest risk of real estate price declines”
I’ve been reading and hearing in the media about a housing bubble for what seems to be going on five years now, and I’m sorry but, after five years the housing bubble forcasters can no longer be considered serious experts.
If one doesn’t like what they hear regarding the coming decline in property values…all they need do is simply turn the channel. Many economist have disputed (and correctly so) this perception of an impending housing bubble, and many experts continue to reject this notion of a looming bubble about to burst.
It boils down to this; it’s a simple Supply and Demand issue. Combine population growth, immigration, people living longer, building moratoriums (I could go on and on), and you have strong demand for a limited commodity…land (they ain’t making anymore). If one is concerned about a bubble–I’d recommend keeping an eye on building permits vs. estimated population growth (Las Vegas for example).
I’ll concede, as interest rates rise the housing market may cool some, but I also believe more people will have greater discretionary incomes (as has tended to be the case in these cycles). I don’t believe we’ll see a decline in property values (w/few exceptions). I also believe we’ll continue to hear from those who’re continually warning us of imminent threats to real estate prices.
Time will tell, but I’m putting my money where my mouth is…I just closed on another home.
Mike Simpson