Posted by Nate on February 25, 2001 at 14:46:21:
Bryan,
From your other questions posted on the board, I can tell you are asking because you want to buy in a down market, and hold until times are better.
That is a reasonable strategy.
Keep in mind, however, that you don’t just want a slow market. You want a slow market that has a reasonable prospect of turning around. Otherwise you are simply throwing good money after bad.
Some of these older industrial cities in the northeast (e.g. western Mass, Utica NY, Scranton PA, etc) have no reasonable prospect of improving any time soon. They will continue to decline.
To “buy and hold” in one of those areas, unless you got a fabulous deal (i.e. one where you get your desired return with assumptions of NO appreciation in rents or value), is not a good idea.
Good luck,
NT