My goal was to start looking at properties by either May or June. I’m looking into
House hacking my first go around, but with how the economy is shaping out I’m on the fence if I should start looking now since interest rates are decreasing and I’m assuming homes are being reduced as well. I really don’t know what the future holds, what if this virus and shutdown tends to drag on for a few more months.I really don’t know, If I should wait until the market recovers? My real concern is once I start house hacking that I won’t
Be able to find tenants that could afford rent and I’ll be stuck with the mortgage.
I live in the dallas Fort Worth area and I’m not seeing many reduced homes on trulia and Zillow but I’m sure properties there are some cheap properties on the mls. (Duplexes/condos).
Thank you, any advice will be appreciated.
Its very difficult to time the market. So I can't say if it's better to jump in now or wait.
I would just make sure that you get a really good deal on whatever you buy right now. Insulate yourself by buying at a good discount below market value in case prices fall.
I don't see prices falling yet because inventory has significantly decreased, keeping prices stable for now.
If you want to house hack but are worried about finding roommates, run the numbers with really low rents and see if that still works for you.
Thats what i'm doing. I am currently under contract to buy a property. I am assuming that I will only be able to rent out each room for $500/mo (thats cheap in my area).
@Claudio Trevisan Dude this will be a great time to invest. If you are worried about tenant payments look at what industry they work in and also look at getting rent payment insurance. We also raised our security deposit insurance coverage. So many of my clients have hedged their risk well.
I own a larger property management firm in Dallas Fort Worth and we are still leasing houses. That is why I am in this business. People will always need a roof over their head.
Impeccable timing to jump in soon. You might want to wait a few months to see how things shake out. I like to buy during the fall season because prices get slashed even more. I would wait 2-6 months if I were you. People are already slashing prices on Zillow in the DFW area I’ve noticed. You’ll find some sweet deals before too long. Good luck!
Be greedy when others are fearful
Originally posted by @Juan Alvarez :
y goal was to start looking at properties by either May or June. I’m looking into
House hacking my first go around
what is your next step? I'm guessing getting some kind of financing/pre approval from a banker? getting a pre-approval costs $0.
@Juan Alvarez patience. It will get worse. When you feel truly fearful to invest you’ll know it is time to start looking. 2008 I was too scared and so bought super cheap/distressed and added value with sweat...to make sure I could weather vacancies, etc., in hindsight I wish I’d paid up and bought newer places. Got good schools and locations though. Big yards. But folks prefer newer and small yards (apparently).
You say that your real concern is not being able to find tenants to pay the rent, and then you will be stuck with the mortgage.
I think of this a couple different ways.
1) Not sure of your current living situation, but if you are already renting, then being “stuck” with the mortgage is no different...only this time your money is actually going to work by building equity.
2) If your tenants are unable to pay the rent (similar to a vacancy), and you are unable to pick up the mortgage then it may have been a bad deal in the first place or you stretched yourself too thin.
Try not to over complicate things!
@Juan Alvarez make sure you are looking in B class areas where the tenants have stable employment. Most of my tenants here in the Berwyn and Lyons suburbs of Chicago are still working, even though they are working from home. I have very few tenants who are completely out of work. In your area, think through the parts of town where people have stable jobs (think post office, nurse, police officer, teacher, etc). These types of jobs are least likely to have serious long term issues as they get PTO, sick leave, etc.
As long as the numbers work. That should be your focus. If the property cash flows and in a relatively decent location. Buy it. Not let other people’s insecurities be put onto you. Just cause others are scared to jump in. You don’t have to be. Go for it!