In 2006
Everyone: “The market is high, aren’t you going to sell and make a killing?”
Me: “Nope, don’t know where I would put the money if I did sell.“
In 2009
Everyone: “Wow! you must have lost a lot of money due to the real estate crash!”
Me: “Nope, I did not sell, I’m not selling, occupancy rates are the highest I’ve seen and rents are going up.“
If you are in this for appreciation or flipping, the fluctuations in real estate values directly impact you. If you are a buy and hold owner, then the market does not impact you as much.
My buddies who sold out in 06, 07 and thought they made a killing, lost a lot when the stock market corrected, plus paid taxes on the sales. Those of us that stayed in the rental game did okay.
Property values and rental returns do not move in unison.
In forty years I’ve seen the worst housing markets being the best rental markets, as long as you bought right and financed right. In 05 and 06, when anyone who could fog a mirror was given a mortgage, we saw double digit vacancy rates.
So strong housing markets can actually be bad for the rental market.