Rental Property Investor · Cleveland, OH · Member since 2019 · 150 posts · 47 votes
I know with this COVID-19; it has been crazy to resume regular life. Is it still a good time to grab property; I currently still work and want to take advantage of getting my 1st rental property house using the FHA loan. I see interest rates are also low. What are you guys imput on still buying houses around this time ?
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
6y
@Caleb Heimsoth
I just saw someone post about Lima One halting all new loans. Other lenders will follow. I’m not an economist, but lenders not loaning money means only one thing to me. Now is not a good time, but 6 months from now...maybe a fantastic time.
I know with this COVID-19; it has been crazy to resume regular life. Is it still a good time to grab property; I currently still work and want to take advantage of getting my 1st rental property house using the FHA loan. I see interest rates are also low. What are you guys imput on still buying houses around this time ?
People will always need to live somewhere, so either you buy or rent. Sure it's a good time. FHA guidelines are changing so time to act.
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
6y
@Caleb Heimsoth
I just saw someone post about Lima One halting all new loans. Other lenders will follow. I’m not an economist, but lenders not loaning money means only one thing to me. Now is not a good time, but 6 months from now...maybe a fantastic time.
@Account Closed Point to clarify. Lima One has not shut down. Still lending on Fix N Flip and Multifamily properties during this period, with adjustments to LTV and cash reserves. Currently paused on Rental property lending (SFR 1-4) as of March 31, 2020.
New to Real Estate · Boynton Beach, FL · Member since 2018 · 59 posts · 31 votes
6y
As with many questions...the answer is "it depends".
I have heard investors say that they are only looking to buy at the moment if they have enough reserves to carry them through a few months of uncertainty. What if you purchase a property and aren't able to find tenants for a few months? Would you have enough reserves to cover these expenses?
Another option I have heard is to try and find a property that already has tenants in place. And to screen these tenants to make sure they are still able to pay their rent.
Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
6y
@Ondrej Brown I think we are going to see many landlords sell properties with tenants in place. Some that were on the fence about getting out before the COVID-19 issue, but this is the final push. I'd contact owners not living in their properties to see if they are interested in selling. They may not be today, but if this goes on a few more months, who knows, they might. Be prepared to take their headaches on as your own.
Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
6y
At this point there is more to loss by buying to early then there is win by buying right now in my calculation. My view is things will continue to fall perhaps quite a bit. But do think opportunity is coming. I would hold your cash for now and see what the landscape looks like in a few months maybe a year out.
I know with this COVID-19; it has been crazy to resume regular life. Is it still a good time to grab property; I currently still work and want to take advantage of getting my 1st rental property house using the FHA loan. I see interest rates are also low. What are you guys imput on still buying houses around this time ?
I was in this dilemma last week when I was getting ready to close on my SFH. I was thinking about backing out of the deal. I reached out to a mentor of mine in his 70's who has been through it all as an investor. He told me to stay the course. We talked about several factors that led me to stay the course. My age, risk tolerance, property location, local economy etc etc all played a role. I went through with the purchase because I felt the local economy here was good enough to support the tenant base and I really wanted to take advantage of super low interest rates (locked at 3.625%). I knew that in the long term it was a solid buy.
We've had a lot of traffic for prospective tenants already and should have it rented before I make my first mortgage payment.
In the end, look at the pros and cons on your side and have enough in reserves if you need to pay the mortgage for a few months without a tenant...and for any other unforeseen issues with the property.