Holding back on purchasing rental property?

Question

I would like to know if anyone has experience buying rental  property than the market crashed? And how did you deal with that? Having to pay your own personal mortgage plus additional rent to cover your rental I guess another question I have is does rental pricing go down for your tenant if the market is down? Or does it stay the same? That way the mortgage keeps paying itself? And I don’t have to worry about making my own personal mortgage payment plus cover part of my rental any answers would help!!! Thank you!

Nathan Gesner · Answer

I only had one investment when the market crashed and it wasn't affected. Rents continued to go up. I sold it four years after the crash and made a really good return.

I wouldn't worry about holding onto your money and waiting for a pending crash. If the crash doesn't come for five more years, you could be kicking yourself for wasting all that time!

The better option is to buy smart. If you use the "cash flow" process espoused by BiggerPockets and taught in Brandon's webinars, you'll be fine even during a market downturn. You will also have experience and the ability to spot good deals during the next crash, which is an excellent time to expand.

Abel Curiel · Answer

Hello Nancy,

Rental rates can increase after a market crash. Especially since lending is less lenient and it becomes harder for folks to purchase homes.