New to Real Estate · Lake Orion MI · Member since 2020 · 3 posts · 0 votes
I have recently started educating myself in space of real estate investing. I have learned a lot from the biggerpockets forums, youtube, books, and podcasts. I am eager and motivated to begin my real estate journey. However uncertantity has started to take over amid this pandemic. I am looking for advice, as a beginner who has yet to buy their first property, on how things change amid an event like this. Should I be more strict in what qualifies a potential investment? Should I not look to buy at all right now? Or any other advice you think would help a begginer pertaining to investing during / after the pandemic. Hopefully this makes sense, thanks.
I think it's still a great time to start, because you can learn from others who are going through this pandemic as well! Everything is changing week to week so it's hard to tell what will happen for sure once this is over.
Now may not be the best time to purchase a buy and hold due to the inability to evict BUT it may be a good time if you're open to purchasing a property to rent out to Section 8 Tenants which are paid through the government. In our area, we're still seeing a lot of buyers purchasing homes if you're a flipper selling a vacant, rehabbed property. Then there are other areas like Pennsylvania that have been on a solid shut down with extremely limited transactions over the last months.
Each situation is different - What kind of investment property are you looking to start with?
I think it's still a great time to start, because you can learn from others who are going through this pandemic as well! Everything is changing week to week so it's hard to tell what will happen for sure once this is over.
Now may not be the best time to purchase a buy and hold due to the inability to evict BUT it may be a good time if you're open to purchasing a property to rent out to Section 8 Tenants which are paid through the government. In our area, we're still seeing a lot of buyers purchasing homes if you're a flipper selling a vacant, rehabbed property. Then there are other areas like Pennsylvania that have been on a solid shut down with extremely limited transactions over the last months.
Each situation is different - What kind of investment property are you looking to start with?
Real Estate Broker · Greater Rochester/Finger Lakes Region · Member since 2016 · 61 posts · 63 votes
6y
I think now's a great time to buy! You should always be strict on what qualifies as an investment property though. Not just during a pandemic. My advice would be to start out in a market that does not have large value fluctuations tied to the economy. Stable markets produce stable income. There's a lot of money to be made in highly volatile markets. But unless you have a crystal ball, it's just as easy to lose that money.
New to Real Estate · Lake Orion MI · Member since 2020 · 3 posts · 0 votes
6y
Thanks @Taylor Hudgins and @Craig S.. This advice is great and I appreciate you taking the time. I will most likely be starting with a single family home. The area I am currently looking in is likely not going to have Section 8 tenants, so I am glad you brought that up. Do you have any tips on determining what makes a real estate market more / less volitile? Thanks again!
Real Estate Broker · Greater Rochester/Finger Lakes Region · Member since 2016 · 61 posts · 63 votes
6y
Any place where properties appreciate or depreciate quickly is volatile. Bubbles burst. But if there is no bubble to burst there's typically slow steady growth. This is the case in my hometown market. When everything crashed in 08, our market was steady. It's been that way for a hundred years. There are many markets like it across the country. They're typically small to mid-sized cities without huge amounts of growth.