Beginner Investor in Hot Market
I'm struggling with the idea of purchasing an investment property in such a high market. I recently sold my first and only property (single family) which I purchased in 2012 so I may a very good profit on the sale. In 2012, properties were just starting to come up after an all time low, and now they are at an all time high which was obviously the perfect scenario for me. But now, I don't know if purchasing a du/triplex is the best idea being that the market is so high. I'm trying to decide as to whether or not I should look for the multi-unit property and attack now, or wait until the market cools off and just continue to save money.
Most Popular Reply
In the short term, you will regret buying at the height of the market. In 10 years, you will wish you had bought more because it will be more expensive. The trick is, can the property cash flow enough for you to afford to hold on to it for 10 years? In your market, probably not unless you can put enough money down to reduce the debt to a manageable level. It is a very long appreciation play, assuming we go through a downturn in the next 10 years.
The alternative is to invest somewhere else that offers more cash flow, but probably less appreciation. Don't do this blindly. Know the market you are buying or stand back and stack up money until you know what a good deal looks like.