Rental properties during recession

[Kalen Jordan]

I'm curious to hear from people who had cash flow rental properties during the 2007 recession how they performed. 

Is it easy to find historical charts on unemployment rates and vacancy rates?

[Michael Boyer]

Neat question, Kalen.... A few impressions, memories.

I recall hustling a bit more to get renters, but luckily my area was tied to oil prices which have been strong till recently. So the current prices do not bode well. That is one theme-- the local impacts are key, some areas are more or less sensitive based on factors like the local economy and job market.

Probably the biggest impact for me was being able to find my first multifamily (4 plex) at a sufficient discount to pencil out well.  A silver lining in the clouds...

So there are two sides of the coin in recessions, one side is perhaps less demand the other is potential bargains. 

That said, it is so complex and nuanced and varies by area (like many big picture economis questions). It can have interesting impacts you may not foresee as a landlord. For example, I had 3 long term very strong renters that either lost a house in the financial crisis or could not sale one (hence they could not buy and had to rent when moving here).  So I actually saw some high quality renters emerge that would have otherwise bought (but the financial crisis had the caught in an underwater house someplace or had damaged their credit with a foreclosure, etc). 

Overall, it highlights the need for good cash flowing property, reasonable reserves (for potential vacancies) and the benefits of having cash/credit when opportunities arise. Best of luck in all areas of the economic cycle...