Is Now a Bad Time to Start Out?

Question

My wife and I are certain future real estate investors who would love to enter the market sometime within the next 1-4 years and acquire our first rental property. We both are drawn to either single family long term rentals, or STR's in the right locations.

Right now we have $20k cash available for immediate investment, with the ability to increase that to $60-70k in the next 3 years through savings and bonuses at our day jobs. We also have approx. $140 equity in our primary residence that we’d be open to getting a HELOC on (would love feedback on if people recommend this or not).

Given our limited available resources for down payment, high home prices, and higher interest rates, is now a bad time for first time investors to enter the market? Is there a chance that rates and prices decrease in the next 1-4 years as our cash reserves increase, thus creating a better scenario for us first time investors?

We would GREATLY appreciate feedback from experienced investors on how best to start out on our REI journey.

Jonathan Greene · Answer

First comment is you are doing the right thing by tracking what you want to do in advance instead of just trying to hop right in. If you focus on learning over the next year and going to local meetups, you will be very ready to buy as your finances increase. STR is a hard first investment, but if you really educate yourself over the next year, you will know what you want and you will know people who do both.