I know that Phoenix is an unusual market, but let's talk about what's happening here. About a year and a half ago, I purchased a property for less than 65% of CMV. I thought that I was in great shape. The market could never eat up that equity. I had $65K in equity. Now, 17 months later, the value has dropped about 50%. I am upside down, but still have a positive cash flow. I set up a lease purchase, but I can not sell the property for the price we agreed on. I can not even sell it for the amount I bought it for. The thought at the time that I purchased, was that the market would possibly drop another 20% before bottoming out. Values are still dropping in Phoenix, with no end in sight. When the market does recover, and buyers are again able to get money and buy homes, the rental market will need to make price reductions. What will I do with that property?
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.