Good evening fellow investors. I am fairly new to real-estate investing and have never really experienced a crash. My partner and I have bought a cash flowing duplex as well as a sfh. I personally have sfh and a duplex in contract for my personal portfolio. We both are working well paying w2 jobs and are gearing up to purchase another rental property. We are trying to re write our criteria to hedge against a crash. We also do not want to over buy in this market. Do any of the more experienced investors who have lived through a crash have any recommendations for a criteria that does well in a recession?
Buy below market value (solve problems) and/or add value to the property so you have built in equity. This provides insulation against loss in value, and can often generate as much profit as many years of monthly cash flow. Purchase properties in decent locations that have little downside valuation risk or, more importantly, little risk of extended vacancy. Many markets had little value decline in the last recession and many maintained high occupancy rates. Have cash flow, prudent debt, and reserves and sleep well at night.