Cash is the worst during inflation. Stash it in stocks, real estate, crypto,`

Nov 17, 2021
5:05:42pm

ebv All-American

anything.

We're looking at buying an income property just to lock in a house at today's prices for 30 years. Good, cash-flowing income properties are the best hedge against inflation that I can think of.

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ebv

Bio page: ebv
Joined: Jan 12, 2011
Last login: May 3, 2024
Total posts: 11,891 (679 FO)

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Messages

Author

Time

Whenever inflation scares pop up advice always seems to be centered

TarCoug

11/17/21 5:03pm

Cash is the worst during inflation. Stash it in stocks, real estate, crypto,`

ebv

11/17/21 5:05pm

What about when they drop in value 35% and don’t cash flow and you bought at the

kotacoug

11/17/21 5:08pm

Then you didn't do your diligence, bought irresponsibly, and shouldn't have

ebv

11/17/21 5:12pm

This is generally true rents didn’t really go down during 2008-2010 just prices.

johnnybyu

11/17/21 5:15pm

Where are cash flowing properties now?

kotacoug

11/17/21 5:17pm

Anywhere. Unless you're trying to put down 5% or something.

ebv

11/17/21 5:20pm

I’m curious… where were you in 2006-8

kotacoug

11/17/21 5:23pm

I was in grad school. And those who held on through 2008 did just fine.

ebv

11/17/21 5:29pm

RE: I was in grad school. And those who held on through 2008 did just fine.

kotacoug

11/17/21 5:35pm

Not everyone. In fact, that was the best time to buy property in practically

ebv

11/18/21 8:52am

It was, once everything crashed. You are on the other side of that. The people

kotacoug

11/18/21 9:31am

Yeah. Not true. Unless you want to buy in the rust belt, with no chance of

Iman23

11/17/21 5:56pm

Yep.

kotacoug

11/17/21 6:50pm

Where are you guys looking? If you're putting 20% down on practically anything

ebv

11/18/21 8:49am

What’s the chance the ones that do

kotacoug

11/17/21 5:20pm

Rents don't track with the underlying value of the home.

ebv

11/17/21 5:32pm

Or you go through a period of 18 months where the govt prohibits you from

Blue Ridge

11/17/21 5:14pm

Ah, yes, the good ol' black swan that is certain to happen again. And soon.

ebv

11/17/21 5:14pm

Make sure you buy one that cash flows, also 35% drop in value is extremely

Gente_Boa

11/17/21 5:21pm

Happen a dozen years ago

kotacoug

11/17/21 5:25pm

2008 was a monumental black swan that had never happened before.

ebv

11/17/21 5:36pm

RE: 2008 was a monumental black swan that had never happened before.

kotacoug

11/17/21 5:41pm

COVID was something of a black swan, but the economy and markets absorbed it

ebv

11/18/21 8:50am

that happened because of millions of foreclosures flooded the market.

Gente_Boa

11/17/21 5:44pm

And what do you think will happen when/if the economy grinds to a halt,

kotacoug

11/17/21 5:50pm

How does the economy grind to a halt? Please elucidate.

ebv

11/18/21 8:51am

Uhh…. When you have excessive inflation, the purchasing power of money decreases

kotacoug

11/18/21 9:37am

I completely agree on not getting overextended. Apologies if that wasn't clear.

ebv

11/18/21 11:01am

No thoughts on getting out of debt?

TarCoug

11/17/21 5:34pm

In all honesty, debt during inflationary periods is your friend. You pay it

LaserCoug

11/17/21 5:36pm

This is precisely why 30-year mortgages are so attractive.

ebv

11/17/21 5:39pm

One of the best ways to get out of debt is by holding it during inflationary

BYU-Ite

11/17/21 7:01pm

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