CalculateRealEstateROI

Strategy

Recession Buying

Deliberately deploying capital during economic downturns when distressed sellers dominate.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Margin of safety

Buy at 50–70¢ on the dollar replacement cost.

Patient horizon

Hold through recovery into next expansion.

Examples

  • 2009 Sun Belt SFR portfolio at $60–80k retraded $250k+ by 2022.

Practical applications

  • Liquidity-rich investors.
  • Contrarian-disciplined operators.

Common mistakes

  • Buying without reserves to weather further decline.
  • Catching falling-knife markets.