Late last year I set the goal of purchasing my first rental property this year (2020). I found a property in February and was about to start the process of purchasing it, but then COVID became a concern.
I’m still looking at properties and would like to purchase one soon. Specially 2-4 unit MF properties. But I am worried about people not being able to pay rent right now. Is that a legitimate concern I should have? Should I only purchase properties that have no tenants so I can properly screen new tenants that are able to pay rent? What are your thoughts BP?
It's always a good time to buy as long as you get a good deal (property at the right price). Beyond a good deal you need to consider a few things. First, check to see the stability of your market...is is a market that has many essential jobs? Second, see what your options are for guaranteed rent - Section 8, housing credit/vouchers, etc. Finally, if your goal is long term and you have good systems in place, you should be fine. I honestly think there are going to be some great opportunities over the next 6 months.
Best of Success!
I think the most trouble you will have with non-paying tenants will be with existing properties...not new ones that need to be filled with new tenants. New tenants need to sign a new lease, with up to two months rent and a security deposit. If they are going to be missing payments, they most likely wouldn't have the start up funding to move in.
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