Updated almost 4 years ago on . Most recent reply
Are prices too high for rental investments? Jan 2022
Hey everyone! Looking to invest in my first rental property. I have a very trustworthy (childhood close friend) connection to set me up with basically a turnkey deal in Philadelphia.
I am weary of the market now as prices are so high. However, money is cheap right now / interest rates are low.
Can anyone shine some light and/or share some opinions on investing in the current market? Is the market too volatile to be investing in rentals right now?
Any and all input is appreciated! Thanks everyone!
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Nathan Gesner
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Sales prices are high and seem unsustainable, but I don't predict a crash. I think it's more likely to slow down, and that may take another year or two. As for rentals, the demand is very strong and I think it will stay that way for 5+ years.
Would I buy a turnkey property for top dollar? No. But I would still buy property that cash flows. If it cash flows today, there's a very good chance it will continue to cash flow forever (assuming you've evaluated it properly).
Would I buy a turnkey property for top dollar? No. But I would still buy property that cash flows. If it cash flows today, there's a very good chance it will continue to cash flow forever (assuming you've evaluated it properly).
- Nathan Gesner
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