Ok so let me preface this by saying I really don't think the US will enter a hyperinflationary state anytime soon (if at all). I thought this could be an interesting conversation around something that most likely nobody here has ever experienced, so it's not really "advice", it's more theory-crafting. If you HAVE experienced this please let us know how, whether you owned RE or not, etc.
So how would you handle a hyperinflationary event with your RE portfolio? It would switch from profit making to survival mode, so that you come out the other side roughly the same way you went into it.
Here are some examples of how I thought I would handle this:
- Switch all my leases to month-to-month so that I can continually raise rent every month not to make a profit, but to continue to afford the cost of labor and materials for maintenance.
- Consider collecting rent in different assets rather than cash, such as gold or Bitcoin.
- Consider not having tenants at all once the mortgage is quickly paid off to prevent unnecessary expenditures.
These are just some examples. What are some ways you've thought about handling this?
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