Time To Buy Or Hold Cash?

Question

I know time in the market beats timing the market. Is the same true for real estate? If I have cash available to purchase a rental should I just be looking for a good deal or are there better times than others to start actually putting offers in?

Nicholas L. · Answer

@Benjamin Orsak

hi Benjamin.  the market is genuinely challenging right now for new investors.  prices are high, rates are high, and there is tremendous demand for inventory by both primary buyers and investors.

and, what we see over and over in the forums: new investors consistently underestimate the costs of getting started and what it takes to buy, stabilize, and hold a property.

that doesn't mean you shouldn't get started - i'm still buying - but i believe you should be (A) well capitalized, and (B) ready for some early bumps.  is that you?

just recent examples - see what this person ran into.

Passive income wasn’t as passive as I thought… 2 Memphis rentals struggling (vacancy,and this person hit a big turnover.

Feedback Needed: $8.8k Turnover Quote for 2BR Duplex (Half)Feedback Needed: $8.8k Turnover Quote for 2BR Duplex (Half)

and these people chased "cash flow" or invested in a "low cost" market without the right team, and got crushed.

Sell at a loss or rent at a lossSell at a loss or rent at a lossFailed BRR in Memphis TN

A Cautionary Tale About a Property Manager in Cinncinatti

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

i hope this helps.  i'd be happy to dialogue further.  i have nothing to sell and i champion no niche or market.

Juan Yepes · Answer

Hi @Benjamin Orsak, there are still good deals to be made even when you think the market is challenging. During challenging market times, there are less deals, but there are also less investors looking for deals. Most get disheartened and the real investors persist and find good deals in any environment.

Also consider that the cycle is different for different areas. Define the location that you think is promising for long term appreciation. Think up-and-coming areas. Not main cities.

Start looking for deals and there will be lenders, title companies and appraisers that will guide you along the way to make sure you know what you’re buying.

If you’d like to discuss further, feel free to DM.

Bo Smith · Answer

Time in market beats timing the market is true -- but that's different from "buy whenever you find any deal." The difference: time in market means consistent buying over a long period. Timing the market means waiting for the perfect moment. You don't need perfect, you need discipline.

Buy when you find a deal that hits your metrics, not when you think the market is "ready." If you can find a property with solid fundamentals (4%+ cash on cash, reasonable cap rate, good location) right now, buy it. Waiting for rates to drop or prices to fall another 10% while you're sitting on cash is actually market timing, and it costs you the rent flowing in from a working property.

But here's the catch: make sure your definition of "good deal" is realistic for today's market. If you're still using 2022 metrics, you'll chase deals that never work. A good deal in 2026 is different than 2023. Less appreciation cushion, higher carrying costs, tighter margins. So validate your numbers against current market conditions, not historical expectations.

Have you already found deals you're evaluating, or are you still building your cash position and hunting? That context matters -- if you're at 50k and can close in 30 days, you're in a different position than if you're still saving.

Matthew Bernal · Answer

Focus on properties with solid cash flow, good location, and reasonable purchase price.

If you’d like to discuss further, feel free to DM.

Benjamin Orsak · Answer

Thank you for the detailed response. Sounds like what I was thinking. If the numbers make sense doesn’t matter too much. The cycle can fluctuate the number of deals where the numbers work. I’m a complete newbie but am looking to start acquiring 1-2 single family home properties a year to start renting. Been wanting to do this for years but just don’t know where to start. I’ve listened to some bigger pockets and coach carson podcasts episodes and currently reading Real Estate Investing The Ultimate Beginners Guide.

Tyler Bennett · Answer

You have to be aware of the 4 cycles of real estate

I work on the wholesaling side and pass a lot of deals to investors, so I get this question a lot.

Real estate definitely moves in cycles. Most people break it into 4 phases: recovery, expansion, hyper-supply, and recession. Every market goes through them at different speeds, but the cycle is always there in some form.

That being said, from what I’ve seen doing deals, the cycle usually matters less than the deal itself.

I’ve seen investors buy great deals in markets people thought were terrible, and I’ve seen people overpay in “hot” markets and regret it later. The difference was just the numbers. If the price is right and there’s real margin in the deal, investors will buy regardless of what part of the cycle we’re in.

When I pass deals to my buyers, the ones who stay consistent aren’t really trying to perfectly time the market. They’re mostly asking things like: am I buying this at a good discount, does the rent make sense, and do I have enough equity in case the market slows down.

Timing the market sounds good in theory, but in reality most investors make their money by buying solid deals and holding long enough.

So if you have cash ready, I wouldn’t stress too much about finding the perfect time. I’d focus more on finding the right deal with enough margin to make sense no matter what phase the market is in. Just my perspective from seeing a lot of deals come across my desk.

Time To Buy Or Hold Cash?

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