THE RECESSION IS HERE!!!

Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes

Quick! Sell me your house before it’s too late! :)

Are you optimistic or pessimistic about this upcoming recession?

I’m optimistic about these next few years, I hope there is a massive price correction. I’m running around trying to gather as much capital together as possible to buy bigger deals. Am I the only one seeing this silver lining?

If I remember correctly - the best time to invest is when everyone is selling. But what do I know I’m just a millennial.

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Mark Fries

Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes

@Nick Rutkowski

Economic conditions never enter my mind...I CRUSHED it during the recession...and I continue to CRUSH it today.

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Mark Fries
Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
7y
@Nick Rutkowski
Economic conditions never enter my mind...I CRUSHED it during the recession...and I continue to CRUSH it today.
37 Reply
Account Closed
Real Estate Agent · Austin · Member since 2019 · 100 posts · 28 votes
7y
@Nick Rutkowski and why di you think it's comming?
1 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
7y
Millennial's live with the parents, go to work, and binge watch Netflix. @Nick Rutkowski You're doing this all wrong man!
I'm on the fence regarding the market. I holding some of my capitol in a short term CD, but I'm also networking and searching for my next deal.
11 Reply
Kevin Marcucio
Rental Property Investor · Montgomery county, NY · Member since 2019 · 35 posts · 8 votes
7y
They still need places to live and house will still need updating and neighbor hoods will still have other better neightnorhoods
2 Reply
Brian Ellis
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
7y
Who says the recession is here, or is coming? Who knows what the future holds.
A recession is a lot different than a correction. Either way, I try and be smart with my decisions with both scenarios in mind.
14 Reply
Jason Hendrickson
Rental Property Investor · Park City, UT · Member since 2019 · 84 posts · 149 votes
7y
Anyone who's old enough to remember the last recession also remembers rental rates taking a dive and vacancies going up. There's no such thing as a free lunch.
23 Reply
Grant Rothenburger
Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
7y
Originally posted by @Nick Rutkowski:
Quick! Sell me your house before it’s too late! :)
Are you optimistic or pessimistic about this upcoming recession?
I’m optimistic about these next few years, I hope there is a massive price correction. I’m running around trying to gather as much capital together as possible to buy bigger deals. Am I the only one seeing this silver lining?
If I remember correctly - the best time to invest is when everyone is selling. But what do I know I’m just a millennial.
Agree. There are a lot of people sitting on capital and waiting, they are just not always active BP users. @Jonathan Twombly Is patiently waiting with you.
6 Reply
Will G.
Rental Property Investor · Maryville, TN · Member since 2009 · 529 posts · 414 votes
7y
@Jason Hendrickson What happened to rental rates? 10% correction?
Vacancies reached 10% around 07.
1 Reply
Jason Hendrickson
Rental Property Investor · Park City, UT · Member since 2019 · 84 posts · 149 votes
7y
Originally posted by @Will G.:

@Jason Hendrickson What happened to rental rates? 10% correction?
Vacancies reached 10% around 07.
Obviously those figures differ by location, but that sounds about right for my neck of the woods. Much harder to fill vacancies and dropping prices was really the only way to do it. "A rising tide lifts all boats" but the opposite is also true.
2 Reply
Nick Rutkowski
OP
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Mark Fries I always see you crushing it. I figured it didn’t change your state of mind.
2 Reply
Nick Rutkowski
OP
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Sophie Maisel I’ve talked to enough scared investors, seen the news, read enough posts on BP. It’s probably happening or not. I am merely “poking fun” at those who are panicking about the “upcoming recession”.
4 Reply
Nick Rutkowski
OP
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Jaron Walling Ha! That’s what all my friends told me too. Who would have thought owning properties and working on my own business was the WRONG THING TO DO?!? I’ve always been butt-backwards with everything in life so I’m not surprised. I’m always laughing my way to the bank on the 1st.
2 Reply
Account Closed
Rental Property Investor · Odessa, FL · Member since 2017 · 145 posts · 113 votes
7y
I think there are many investors sitting on the sideline waiting for the recession to drive prices down. So technically there is still a lot of demand which will keep the prices up during a crash.
Currently I am not optimistic about a massive price correction, but I'm sure that in 2008 there were a bunch of people talking the same way I'm talking and they were proven wrong, so my guess is as good as anybody's.
5 Reply
Victor S.
WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
7y
CLICKBAIT IS HERE!!1!1
32 Reply
Greg ParkerBusiness Member
Realtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 663 posts · 536 votes
7y
Always good deals to buy during a slowdown. Have your cash ready.
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MGM Property Pros LLC
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3 Reply
Kris L.
San Antonio, TX · Member since 2019 · 930 posts · 836 votes
7y
Are you talking about a local recession in the state of NY? Because I don’t see anything like that where I am looking at RE
5 Reply
Ken T.
Rental Property Investor · Elk River, MN · Member since 2017 · 17 posts · 12 votes
7y
@Nick Rutkowski It really depends on the area you hold properties. Some may have depressed rents and others are still booming.
1 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Who knows when and how it will affect housing. If you purchased right and know what you are doing this would be a investors dream. Recessions and downturns transfer money from the impatient to the patient. (Warren Buffet)
My strategy is to keep doing what I am doing and playing my edge. In the meantime, I am building a just in case fund. Every investor needs to look at their portfolio. Can you withstand rents going down 20%? Can you withstand a year with no rents? Can you withstand 1yr with no personal income?
If there is a stress test with banks. Don't you think you should do the same?
17 Reply
Account Closed
Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
7y
Sigh.
A recession is normal. How people react to it determines how many people are affected by it or even, if it happens at all.
I hardly think inciting panic when the situation has not even been determined is helpful in any way whatsoever. At least, not to most people.
Then again, some mothers eat their young so, Que Sera.
P.A.K.
4 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
Spring is here and my local market the prices are up 6% over last summer and properties are moving even faster. No multifamily inventory at all. Maybe the recession is there, but it isn't here.
4 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
7y
I think a lot of us are more liquid than we like to be or are used to.
I'm not waiting for anything specific like a recession or even a contraction overall. The effort of turning like 200 rocks for a skinny deal just doesn't appeal to me. No surprise there. LOL
In the meantime, I'm earning my 2.1% in a money market and keeping tabs on my 5 or so specific plex owners of properties I am interested in.
Also may sell a couple commercial apts into the froth at these low cap rates. IF I can find something to 1031 into like a 40-50 unit in the midwest.
During the recession, I didn't experience higher vacancy or lower rents. Just the opposite matter of fact. A-class renters and homeowners moved down to my B/C+ townhomes and apts.
Maybe it was a resort-ish city thing there in UT or A class saturation. I saw A class apts offering tons of incentives to fill their units.
8 Reply
Mike Bean
Worcester, MA · Member since 2018 · 69 posts · 41 votes
7y
I'm a newbie looking to get my first deal before the fall. My local market is strong but I do have this worry in the back of my head. If I get 3 or 4 unit with a 300 something thousand mortgage and my rents were to go down 20%, I would be screwed. My w-2 income is around 50k and with a long, expensive commute on top of my other debts (student and car) I would have no choice but to sell immediately if something major was to happen. Because of this thought in the back of my head I'm reluctant to get in but at the same time I'm DYING to get in.
The next book I read is going to be recession proof real estate investing which came out pretty recently I believe but any advice on what to do here?
7 Reply
Nick Rutkowski
OP
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Ken Tracy
Yeah I agree. Where I’m from it’s so stable the last recession went right over without stoping by. So it really does depend on location.
0 Reply
Nick Rutkowski
OP
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Victor S. You betcha. You got hooked my man.
1 Reply
Nick Rutkowski
OP
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Joe Splitrock
Nice I knew there had to be some places seeing a boom. Upstate New York is so stable we aren’t seeing a hit or a miss.
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