Buying first property in booming market

[Scott Chapman]

I am currently in my “research” phase right now. Doing a lot of reading on BP and am currently in the middle of Brandon Turners book on rental properties. Figured I would pick some of your brains for a bit.

I will be a first time buyer in 2020. Going in, do you think this is a bad time to purchase “Ready to Rent” properties seeing as the market is at an all time high? Do you think the market will dip in 2020 as many predict?

I don't know if I'm ready to try the "BRRRR" method simply because I don't know if I can take on a rehab at the moment. So, as I see it my best option currently is to buy a property that is ready to be rented upon purchase.

The main issue is finding a property at a good price. I live and will be buying in the Metro Atlanta area and properties prices here are high, to say the least.

Thoughts?

[Tamara Deering]

@Scott Chapman

I don't know the Atlanta market but in the Austin market, another booming market, homes that have an existing tenant tend to sell for slightly below market.  This is because they don't offer the immediate equity boost of being able to raise the rents and fix up the property, nor do they allow an owner occupant to move in.  If I were you I would investigate these opportunities and see if there is something like that in Atlanta that would work for you.  If most of your mortgage was covered for the first year even if your not cash flowing huge numbers the deal could make sense.