In 2017, a German man who goes by the name Marco came across an article in a Berlin newspaper with a photograph of a professor he recognized from childhood. The first thing he noticed was the man’s lips. They were thin, almost nonexistent, a trait that Marco had always found repellent. He was surprised to read that the professor, Helmut Kentler, had been one of the most influential sexologists in Germany. The article described a new research report that had investigated what was called the “Kentler experiment.” Beginning in the late sixties, Kentler had placed neglected children in foster homes run by pedophiles. The experiment was authorized and financially supported by the Berlin Senate. In a report submitted to the Senate, in 1988, Kentler had described it as a “complete success.”

“The key to occupational happiness is to first figure out what you’re passionate about and then find a job that matches that passion” (pg. 4).

“…They studied players who had all spent roughly the same amount of time—around 10,000 hours—playing chess. Some of these players had become grand masters while others remained at an intermediate level… [It turned out that] Hours spent in serious study of the game was not just the most important factor in predicting chess skill, it dominated the other factors. The researchers discovered that the players who became grand masters spent five times more hours dedicated to serious study then those who plateaued at an intermediate level” (pg. 81-82).

As a general rule of thumb, you should always buy where you have boots on the ground all else being equal. Indeed, even if not everything is equal, you should lean toward buying where you are at. In fact, if you can get properties to cash flow where you live, you should really buy where you are.

It’s just an enormous benefit to be able to visit the property and go around the neighborhood for real rather than some glossed-up digital version. It’s also much easier to verify work has been done, correct problems as they arise, and switch managers or contractors if need be when you live in the same place as your properties. 

​That being said, when there isn’t an ounce of blood to squeeze out of a turnip (or rental property), it’s time to look elsewhere. Even then, closer is still better.

Many mills simply went offline when the pandemic started, and then they only reopened gradually. Indeed, the main reason that lumber prices are starting to (slowly) come back down to earth is because the mills are mostly back up and running at full steam again.
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The reason prices haven’t come fully back down to earth is because demand is still through the roof.

Get this clear in your head: If you are investing, you will always face regret.

There are no exceptions. In fact, you will have something to regret no matter what.
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Either you should have bought before the runup or at the trough, or you should have sold at the peak. And even if you buy right, you should have bought more and earlier.