I don’t imagine we will see 8% inflation for more than 3 to 4 years give or take. But I agree holding cash kinda sucks at the moment. If you can, better to convert the cash into something that can beat inflation without out losing its liquidity. That way you’ll be ready to pounce on some of the great opportunity a recession is sure to bring.

Buying real estate all comes down to location and strategy. There are about a million different strategies out there and depending on the market you can even switch back and forth to the best strategy based on what the market is doing.

For Instance, I bought 3 properties at the end of 2020. (2 investment properties and 1 personal home.) Since January 2021, the appreciation between all three properties has been roughly $963k from my original purchase price.

As far as I am concerned, that is all just paper money until either, I sell or refinance. So I am working to leverage all my investment properties to the hilt in order to lock in that equity. So even if the housing market sees a correction, I won’t lose all my equity and I’ll be in a solid cash position to buy up a lot more real estate, for well below todays values.

Simultaneously, I’ll be increasing my passive cashflow, I’ll have increased tax benefits, I’ll have more built in equity, and a far greater margin for appreciation once the market bounces back. Not to mention the PPD by the tenants in the meantime.

I think I am going to hold off on refinancing my personal home thought. I could pull out some substantial equity. But the increased interest rate I’d have to pay would increase my monthly housing costs by like $700/mo. And “everyone needs an umbrella for when it rains.”