Multi family real estate and over priced housing market

3 Replies

The housing real estate is increasingly high as interest rates are low. Does it still make sense to purchase multiple family units when at some point the housing market will take a dip.

when the housing market takes a dip you can purchase property cheaper but not sure what the interest rate will be.

Or

Would you rather hold onto the cash

Or continue to purchase multi family homes that can generate enough rent to offset a drop in price.

At this moment in time what would you do?

@Deven Singh to me a good deal is a good deal anytime. In my area asking prices are just as crazy, or crazier than elsewhere. So what I am looking for today are distressed properties with tired a LL. On market or off, generally off. They are not common but they exist in any market. 

@Deven Singh more time in the market is better than trying to time the market - so the saying goes. Meaning, over time - if you intend to be a long term real estate investor - being in the market for a longer time (i.e. buying your 1st home as soon as possible) is better than holding onto your cash and trying to time the market for prices to drop/"correct". 

Sure, I wish I was able to buy my 1st in 2008 or 2013 but I got my 1st in 2017. Appreciation has been good and even if there is a correction and I see negative appreciation over the next 5 years - I will still have tenants paying the mortgage down and in 10,15, 20 or most likely 30 years IF I choose to sell, I will have seen plenty of appreciation by that point. Part of that is making sure it is a good deal and knowing your exit strategy when you buy.

That's my thought process - hope it helps!