Looming ‘recession’? Am I too optimistic?
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.
