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**DoctorIrokezov** · 04-25-2012, 02:13 PM

Still a lot of variables, what % of return will this have?

The percentage return will depend on the purchase price. Conservatively, we'd be looking at 10% a year, each.

Are the demographics in this area good, and will they be good for the foreseeable future?

The area is the same neighborhood my sister lives in. She's a 911 operator and I've got her looking up crime rates and growth patterns for the last 10 years for me.

Have home prices bottomed in this area?

I believe they have bottomed. My sister bought 3 years ago and prices have only dropped about 10% since then. Even if they haven't totally hit bottom, it's touch to call. I don't think they have much further to fall if at all.

What is your honest assesment of downside risk if you had to get out from under it?

Honestly, I'm having a hard time finding a downside. Worst case scenario, I've got a house my family can live in, in a gated community, mortgage free. My father wouldn't be asking for his half from me if that occurred.

I guess the worst downside could be the value dropping further and us needing to sell. The only way I can see us needing to sell is if the taxes jump to a level where it's not worth having it. It could happen...but that could happen anywhere.

Maybe the return isn't as high as predicted?

04-25-2012, 02:13 PM	#5
DoctorIrokezov Join Date Oct 2005 Posts 430 Senior Member	Still a lot of variables, what % of return will this have? The percentage return will depend on the purchase price. Conservatively, we'd be looking at 10% a year, each. Are the demographics in this area good, and will they be good for the foreseeable future? The area is the same neighborhood my sister lives in. She's a 911 operator and I've got her looking up crime rates and growth patterns for the last 10 years for me. Have home prices bottomed in this area? I believe they have bottomed. My sister bought 3 years ago and prices have only dropped about 10% since then. Even if they haven't totally hit bottom, it's touch to call. I don't think they have much further to fall if at all. What is your honest assesment of downside risk if you had to get out from under it? Honestly, I'm having a hard time finding a downside. Worst case scenario, I've got a house my family can live in, in a gated community, mortgage free. My father wouldn't be asking for his half from me if that occurred. I guess the worst downside could be the value dropping further and us needing to sell. The only way I can see us needing to sell is if the taxes jump to a level where it's not worth having it. It could happen...but that could happen anywhere. Maybe the return isn't as high as predicted?
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