Is it the right time to buy?

Question

Is it the right time to buy your first investment during this pandemic? Any advice helps!

Joe Villeneuve · Answer

It's always the right time to buy.  The question should always be, "is this the right property to buy".

Jordan Moorhead · Answer

I just got an offer accepted on a duplex in East Austin, the deal works, why wait?

Jerry Stevenson · Answer

@Kirk R. Thanks for your insight, and I’m in Austin Texas. I found a property that makes since for 240k, that I want to house hack. I have a buddy that will be staying in one of the rooms and I would just have to find another for the other room.

Kirk R. · Answer

I would be cautious jumping in right now depending.  Think the risk is much higher.

How good are you at screening tenants or hiring a property manager?

Estimating rrepair costs?

If someone will sell you a property for $1 is it a good deal?  some houses in my market have to pay to get them bull dozed.  my tax preparer did that.  he couldn't fix it as fast as stuff was being stolen.

If you can go owner occupied instead of renting something I think your risk is way reduced.  Bank probably has much harder time foreclosing vs. landlord evicting.  Plus in my market if I'm owner occupied don't have to pull all permits for stuff.

What state you in? & are you renting?

Syed H. · Answer

Yes and no.

I am buying still, but only for home run deals. I need a discount. Anyone paying the same prices as 3-6 months ago, doesn't know what they are doing. Buyers have dried up in many markets, financing costs have gone up, leverage has gone down, collections risks has skyrocketed; etc. If after calculating that all in the deal still makes sense, of course buy it. For a newbie though, I wouldn't touch this market with a 10 ft pole.

Dan Burstain · Answer

Now is the time to buy in Austin.  Inventory is low, prices remaining steady.  Now is the time to buy without getting into multiple offers as much.  Prices will jump in the next few months if we don't shutter economy again.  Article link below shows how Austin is one of the best cities to quickly rebound from Covid.

https://www.foxbusiness.com/lifestyle/coronavirus-austin-minneapolis-coronavirus-recovery-moodys

Kirk R. · Answer

i'm going to look at a property today & put in an offer if it's able to be occupied as is.  It's on the low end tho.

I think people will be downgrading/ looking for cheap housing & may lose more expensive housing.

My feeling is the housing market will just become less liquid.  But I guess prices will eventually drop, but it will take over a year.

& tenant screening is gonna be tougher.  Gonna be alot of tenants that get evicted for non payment of rent.

Is it the right time to buy?

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