Continue with cash purchase (invest prop) due to coronavirus?

Continue with cash purchase (invest prop) due to coronavirus?

Member since 2020 · 1 post · 0 votes

I'm a few weeks out from closing on an investment property. It's an all cash deal and I'm looking at likely having to spend $40-50K on top of purchase price to fix it up before being able to rent it out within 4 months of purchase. Both short and long term it's a solid investment - large house on large lot (with room for future SFH development) in a growing area.

That said, the recent coronavirus scare has some red, or perhaps right now just yellow lights flashing. I have five other investment properties that right now net about $6000-6500/mo depending on various factors. As of today I have not heard from any tenants about being unable to pay future rent due to job losses/reduction due to coronavirus, but I have not actively asked either. My city has put a moratorium on evictions so I won't be able to replace any tenants who can't pay With the expected cash flow, and even with the "expected" hiccups along the way (possible vacancy, major repairs, etc) I felt find going forward with an all cash deal. Now I'm not so sure. 

Mainly wondering if anyone is in a similar boat and moving forward or backing out of any deals they might have coming up.

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  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    6y

    Well if it takes 4 months for rehab we will most likely be at the latter part of the virus. Also since it's cash you can do a HELOC worst case. Or you can close and wait for rehab. Either way if it's a good deal continue with it.

  • Rental Property Investor · OH · Member since 2020 · 24 posts · 23 votes
    6y

    I have one I purchased with cash a few months ago.  It is partially completed but I discussed the situation with my lead contractor and we both agreed to stop work until things aren't so murky. He knows I have a huge security gland.  LOL

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