real estate

The housing market during a recession depends on what caused the recession and how much housing inventory exists. Sellers become more flexible. You'll face less competition. Properties might sit on the market longer, giving you time to make thoughtful decisions.

Conducting a property investment analysis will help ensure you choose the right asset. Do a rigorous analysis of expected returns and cash flows and consider financing options and debt strategies.

The ratio of real estate to net worth depends on many factors such as age, location, existing assets and your risk appetite. A rule-of-thumb is to maintain 20% to 40% of your net worth in real estate. 

Leverage in real estate is the act of borrowing money to buy property. Real estate leverage is a good strategy for building long term wealth but comes with higher risks in market downturns and lower cash flows due to mortgage expenses.

Evaluate your readiness for real estate investing. Analyze the market and analyze ROI, cap rates and breakeven rent, and model negative market scenarios as part of your analysis. 

When considering buying rental properties, calculate the net operating income, Return on Investment (ROI) and Internal Rate of Return (IRR). You should also compare the investment to the opportunity costs, such as stock returns.

The nominal interest rate is the interest rate that is stated on a loan or mortgage and has not been adjusted for inflation. In investing, the nominal rate is the return on an investment before adjusting for inflation, fees or taxes.  

House hacking is the act of generating income from your real estate property while living in it by renting out a part of the home you live in, or renting out units of a multi-family unit while living in one of them.