Updated over 5 years ago on . Most recent reply
Purchasing Buy and Hold
Who is continuing to buy cash flowing buy and hold? We closed on a sale (the day before COVID broke) and are using a 1031 to purchase four cash flowing properties through a turnkey company. The duplex is rented out, and the three SFM are not yet rented. Initially I was happy to move forward, but the COVID crisis appears to be becoming a longer issue than initially thought. Concerns are: finding renters and renters being able to stay employed to pay rent. Looking for some experiences and thoughts.
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I would still buy cashflowing properties right now as long as the current numbers make sense. I wouldn't get into leveraged "appreciation" deals right now though.
I was able to lease out two properties this past week (with leases starting this weekend) to excellent tenants with stable jobs (food distribution worker/ truck driver, healthcare worker/industrial contractor). There are still people that need to move, but the tenant pool is smaller right now. You may need to do slightly lower rent, lower app fees, etc to get it leased out quickly. But there are still enough essential employees out there working that you should be able to find someone as long as you have a quality "product" and competitive price.