Boy, you're really drinking the koolaid. Doubled in the last 4 years, huh? values increased on average a little less than 50%/year for 4 consecutive years? Maybe in your mind but until you sell its only speculation.
And while a downturn may be a buying opportunity, if it is really severe then people just give up and move away and you have properties sitting there empty generating no or low income.... it happens... Detriot and Atlantic City come to mind. If you have a broad, geographically diversified portfolio of properties you can weather the storm... just like if you own individual stocks you can absorb some losers... but few property portfolios are sufficiently diversified to weather such an event.... luckily they are rare.
I wouldn't be so quick to doubt. I'm in the same boat he's in. And exactly what he said about his portfolio I could completely relate to. Most of my portfolio is in real estate which completely funds my living expenses and then some. My stocks have done well but anything bond related is flat at best.
And I believe what he said about his increase in values. I have a house now purchased in June of 2014 for $95,000. I have it listed for sale and expect to get $215,000 for it.
Have one I picked up in 2008 for $108,000. If I sold today it would fetch $275,000 on a bad day. Another buy in 2011 for $115,000, today's value $225,000. Another 2011 purchase for $115,000 now worth $260,000. A 2009 purchase for $74,000 worth $150,000. A 2012 purchase for $87,500 worth $200,000. A 2010 purchase for $54,000 worth $120,000. Another 2011 purchase for $75,000 worth $160,000. A 2009 purchase for $95,000 worth $185,000. I even had two purchases in 2015 that have increased in value, one bought for $80,000 and now worth $140,000, another bought at $60,000 now worth $125,000. That's just a sample.
Real estate when bought right can reap a lot of benefits. Sure, I had to make repairs and improvements but the rent I've collected from them during ownership has more than covered those.
I even bought one as recently as a year ago. Paid $110,000. Did spend $25,000 in upgrades/repairs but it's rented for $1200 a month and I could sell it now for $165,000 easily in this market.