Cory,
I don’t deny there is some thruth to the risk named, but without risk there is no gain at all.
As it is often said, it is a 3 course meal, and for me to invest in a prop it needs to tick all the boxes.
Yes, to long term buy and hold, yes to appreciation, but a big fat yes to cashflow as well. The thicker the gravy the better it tastes. I do achieve targets on all 3 points. Only thing is that it takes a lot of time and effort to find such props.
By the way, not talking about buying props in such towns as the Caroline’s, Bassano’s or Forrestburgs.
Im also not buying single units. Purpose build rental units have my interest.
As for the risks, they are easily transferable to any town or city in Ab, big or smaller.
For example, that townhouse bought for 270 in Calgary, or the duplex for 350 in Edmonton, what do you think the appreciation has been so far since 2015? Zip, zero, likely even negative. Same for rents, in a strong economy it would have likely been 1800 and 2000 rents. So, no cash flow, no appreciation, only mtg paydown for Jesse. It goes to show that when the economy tanks, it tanks everywhere.
As far as refi, that’s everyone’s personal choice, I have never done that, didn’t feel the need, plus it depends maybe on what stage off life you are in. Personally, I’m not so sure leveraging is always a good thing, (also not saying it’s a bad thing) but one needs to decide for themselves. But I can tell you I’m a happy camper, my strategies have delivered, the pay off has been great, even in today’s economy.
Anyhow, the sun shines, just finished watching Tour de France, so it’s time to hop on my bike myself. Cheers!