Newbie Investor During Corona Virus Pandemic

Newbie Investor During Corona Virus Pandemic

Rental Property Investor · Tustin, CA · Member since 2019 · 7 posts · 2 votes

Hello BP world, I've been doing my research and studying the real estate industry for more than half a year now and I'm 100% certain that my strategy of acquiring my first investment property will be a house hack. I also know what I'm looking for in a property in regards to what type of property, the location, cash flow, bed/bath, etc. But because of the corona virus pandemic, the volatility of the the economy/markets, the mortgage/lender world being a little shaky, and the near future of the real estate market being so unknown, I'm a little wary if I should be looking heavily into acquiring a property during this time. I've spoken with a couple of local real estate agents, lenders, and a very seasoned investor, and most leaned towards "window shopping" for properties until the pandemic dwindles down and the economy is back stable. But they've also told me that its never a bad time to get into real estate which I would agree to, especially during a time when it seems that mortgage rates are very low. 

As a 23-year-old newbie investor looking for his first investment property and who has never felt the impact of a market crash or recession before (except when my parents cut down our expenses during the 2008 crisis), I'm unsure if I should be taking action or not. So my question for you all is should I start looking heavily into acquiring my first property, even during the duration of the pandemic, or should I keep window shopping and educating myself during this time?

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  • Member since 2020 · 2 posts · 0 votes
    6y

    I’m right there with you. I’m also a 23 year old looking to get into a house hack as a first property and had the same question...I’m wondering how hard it would be to find tenants at the moment. 

  • Developer · Atlanta GA · Member since 2020 · 30 posts · 15 votes
    6y

    Hi Bryndon,

    You are in good company, I am also to make my first purchase during the pandemic. I am hoping that we see some opportunities in the coming months as a result. I continue to hear that a surge of Airbnb properties will be hitting the market which may be a great a opportunity for you being near SoCal. Additionally areas that are more speculative will likely soften as investors who are holding the properties for flips or appreciation plays back out.

  • Member since 2020 · 3 posts · 1 vote
    6y

    I understand where your coming from as well. I'm actually looking into doing my first flip but seeing that I work at a Title Company I've also seen a lot of deals fall through due to Covid bc people are being layed off...So I would say make sure your financing is secure and (job as well) bc they will check before they give you a clear to close and if anything is different than what you originally disclosed on your 1003 (lenders loan application) then they will have a reason to delay closing or cancel it.So just make sure all your ducks are in a row before you jump. But I still say jump!

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