Buy now while the market is hot?

Question

My partner and I are wanting to buy an investment property. The way real estate prices have soared in the last year, it best to hope prices go back down then buy, or do you think these prices are here to stay?

Richard Fernandez · Answer

We live in Dothan, AL but looking for properties in Enterprise which is close to the military base here. The flight students are always needing a place.

We have one property now that we have great tenants in. The house is paid off so it's making most of the mortgage on the house we live in now. We would manage this as well until we add more properties to our portfolio.

Doug Spence · Answer

@Richard Fernandez If the numbers make sense and the property fits your strategy, you should buy. Just because prices have gone up, doesn't mean a crash is coming (its not, imo). Don't worry about what the headlines say and what some guru says who's trying to sell gold and silver. Analyze the property using your criteria, and if it makes sense, pull the trigger and buy. Real estate is very forgiving over the long term.

Keep us updated on your progress, and good luck!

Jonathan Greene · Answer

There are deals to be had in every market, even the hot ones, you just won't find them on the open market. Where do you live, where do you want to invest, what kind of capital can you deploy, what type of management are you going to do? If you can find a gem in a hot market you can get quick appreciation and refi opportunities, you just have to know where to look or who to have looking for you.