Investor · Wilmington, NC · Member since 2017 · 44 posts · 16 votes
Or are you doubling down. Curious to see what this group of experts is doing. We primarily do Fix'n'Flips in the mid-range in our area, and just closed on our last active property in February. Ordinarily, we would be actively looking for our next two projects, but I fear we potentially could be buying a bit high right now and future ARV's will decrease.
Is it best to keep forging forward with our plans toward our goal, or is it time to take a pause and see if the future market provides better deals? I feel last weeks unemployment numbers are just the beginning of the waterfall.
Is it time to change strategy? Purchasing a new rental seems even more risky in this environment. I am anxious with money sitting in the bank, but don't want to make a poor decision.
I think it depends, if you are at the high end of your ARV's then yes, I would worry a little. If you find the sweetheart deal with plenty of room and a win-win situation, I say go for it. I had the opportunity to pull out of deal I put an offer on in the second week of march, but its at 65% ARV, owner financed with no money down, and a flat interest payment at balloon in 1 year. Even if the market drops 20%, which I don't think it will, I can still rent or sell the property for a profit. I close on Monday and will start looking for partners who might want to finance me out of the balloon loan. I am sure there are plenty of investors who are looking for a safe place to put some money.
I would move forward with cautious optimism and be ready to help people out of really bad situations.