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http://ochousingnews.com/blog/bad-condominium-investments-keep-losing/

Condominium investments go bad, and sometimes the property can’t be rented out to cover the expenses. Owners can’t sell and can’t rent, so they lose, lose, lose.

I don’t like speculating on investments with negative cashflow, particularly in real estate. If the purchase does not go as planned, the negative cashflow relentlessly drains your income, and in some circumstances, you simply can’t get out.

During the Great Housing Bubble, many speculators tried to make money through trading houses. The vast majority of these traders were not professionals but amateurs who thought they could be professionals. Most amateurs ended up losing money because they did not understand what it takes to be successful in a speculative market.

The public adopts a “buy and hold” mentality where they accumulate assets with an eye supposedly on the long term; everyone wants to be the next Warren Buffet. In reality this buy-and-hold strategy is often a “buy and hope” strategy — a greed-induced, emotional purchase without proper analysis or any exit strategy, and since they have no exit strategy, and since they are ruled by their emotions, they will end up selling only when the pain of loss compels them. In short, it is an investment method guaranteed to be a disaster.

Source: http://ochousingnews.com/blog/bad-condominium-investments-keep-losing/#ixzz35TN6hvU8

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