Is it a good idea to buy rental property investment during COVID?

4 Replies

My partner and I are looking to buy a 3-6 bedroom single family/ multi-family home to house hack in the North Jersey area. I've been hearing a lot of stories of tenants not paying rent due to COVID-19 and unemployment status. Should we hold off buying? 

I would be very cautious buying anything with tenants in place, and ensure that I have plenty of cash reserves. Otherwise the risk can be greatly reduced by being cautious with your tenant screening.

A deal is a deal. If you find a property, make sure it cash flows. Underwrite for higher vacancy, as specially if you can't get non-payers out at the moment. Find your break-even point and forecast a worst case scenario. Would you be able to weather the storm? If not, pass. If so, go for it. The worst case probably won't happen and you'll make money. Just go in eyes wide open. Try and find the real reason the seller wants to sell now and leverage that. There's probably a problem and you should be compensated if you are coming in to fix it.

Not an answer but I just want to leave a quote here by Warren Buffet about investing in general: “Be fearful when others are greedy and greedy when others are fearful.”