investor from Louisiana
Hi. I'm pretty new to the real estate scene. Just purchased my first rental property/future flip house last month. I'm looking to expand my horizon and learn as much as possible and hopefully become a full time investor.
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Welcome to BP @Josh Gravois!
The time is always right, when you buy right. That means you make your money when you buy. There are a lot of "1% a month, makes a good investment" people out there. I heard it yesterday while in a continuing education class, with a room full of "real estate professionals." The thinking is, if you pay $120k for a property and rent it for 1200/month, you have a "good investment." That might turn out to be a decent investment, in the fantasy world where prices always go up. If you pay near retail and buy before values drop 20-30% and it takes 10 years before they recover, then what do you have? If you don't know what deferred maintenance (or the less obvious mechanicals running on borrowed time) looks like, your expenses will eat you up.
I use what Warren Buffet calls a "margin of safety" by only buying significantly undervalued properties, that can be obtained for total acquisition costs (purchase, holding & rehab) below 80% of retail value.
TOPS covers tuition and a little extra for those who qualify for it. I think it will have a negligible impact on real estate values. Before TOPS started in 1997, there were plenty of ways for people to finance their college educations, including paying their rent or buying a property near campus.
Market conditions are good to be aware of and be prepared for, but not a reason to sit on the sidelines and live as a spectator.