Looming ‘recession’? Am I too optimistic?

2 Replies

I hear the news, newspapers and some TV “experts” say a recession is at the horizon.  This year I’m on track to have 1/2 dozen new properties.  Just wondering if others are concerned about a possible slowdown in the economy or just continuing to buy great deals in cash flowing areas.

A slow down in the economy and a slow down in the housing/rental market are different things, that happen on somewhat independent timelines. 

If you are cash flow positive (with a buffer), and don't intend to sell the property(s) in the next few years, then you should be in a good position to ride out a downturn in either/both.

What's the opportunity cost of buying or not buying the properties - is there a safer investment with better returns? Or would you just be sitting on cash?

@Jeff Copeland , thank you for your response.  I have the same thought of opportunity cost if I don’t buy.  Every so often I guess just wanting to confirm I’m on the right track.  So far have passed on properties I don’t feel have enough cash flow and small extra cushion.  I am planning on slow and steady to reach my goals for rental portfolio.