Who's buying properties right now?

Investor · New York, NY · Member since 2017 · 148 posts · 252 votes

Hey BP,

Who's currently buying rental properties?

-Are you at all worried about prolonged eviction moratoriums, rent freezes, a second wave or anything else that they are talking about in the media?

-Or are you marching forward, steadfast if the opportunity makes sense and the numbers meet your criteria?

Personally I fall into the latter but am proceeding with more caution than usual. Seems to be a lot of mixed emotions in the forums of late.

10 Reply

177 views

Most Popular Reply

Sean McDonnell

Real Estate Agent · Surf City, NC · Member since 2017 · 648 posts · 597 votes

I am continuing to buy properties and help others do the same. Most investors that I am working with are targeting the B-C class neighborhoods and house hack properties. I just closed on our latest house hack deal a month ago and couldn't be happier!

I also stopped watching the news a few months ago which has helped a lot with my sanity haha

49 Reply

See this reply in the discussion

133 Replies

Jump to latestLatest

Sort by

Whitney HuttenPro Member
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Paul DeSilva Yes, I'm still buying in stable/growth markets, B class neighborhoods, and cash flowing deals (no appreciation deals). I've also reviewed my portfolio and have exited any marginal notes and properties. Anything I'm holding, I'm OK to hold for 5-10 years. This is a time to remain well-capitalized and stick to your numbers and not overpay for property. You can always overpay next year if asset prices still haven't fallen ;)
Podcast Guest on Show How to Build Generational Wealth Without Losing it Along the Way
2 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Todd Pultz You guys are on fire! Well done! Value add is our go to, it aligns with our business plan and makes a BRRRR that much better! We are just getting some residents that have SSI in the property we are in contract on and look forward to learning more about it. Good luck!
0 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Nate Bell Well done sir! I agree we are being cautious for the near future and screening any potential tenants with some extra scrutiny. Long haul is the game plan here!
0 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Sam Denny Congratulations! We love off market deals, our plumber presented our last off market multi family purchase, it was a win-win-win, we acquired the property, he got a finders fee and another property to maintain and the seller got to retire. We are in the same boat on our current deal, it's cash flowing now but once we can get the units to market rent it will be home run deal!
2 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@George Mevawala Sounds like a great business model in a very hot market! Awesome! Seems to be a big population shift in most markets now, especially headed towarads the southwest and southeast. We are experiencing record low inventories up here but not that kind of population growth.
0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
6y
@Paul DeSilva worried? Very. Buying? Yes.
1 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Lien Vuong Great Book! We are seeing no vacancies and a huge shortage of rentals in our area. Apartments are on the market just for a few days in our market. Would probably be less but showings have been a bit tricky with occupied units.
0 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Andy Nathan Sounds like a great plan. Pulling that money out is one of my favorite parts of the BRRRR method, well the whole BRRRR process is awesome and my favorite strategy.
1 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Jon Kelly You're talking my language. We can't wait for something that may never happen, we need to stay proactive and keep our goals in mind. Congrats on the acquisitions and future properties. Right now you have to be extra careful screening potential tenants and yes there are plenty of qualified and over qualified people looking to rent. Make a criteria and stick to it. We always say "Trust the Process"
0 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Andrew Syrios totally agree!
0 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Whitney Hutten We love stable B/C markets, specifically value add properties in those markets. Sticking to your numbers is SO key!
1 Reply
Leonel Lerena
Santa Cruz · Member since 2020 · 11 posts · 2 votes
6y
Originally posted by @Paul DeSilva:
@Todd Pultz You guys are on fire! Well done! Value add is our go to, it aligns with our business plan and makes a BRRRR that much better! We are just getting some residents that have SSI in the property we are in contract on and look forward to learning more about it. Good luck!

Hi there,
Is there a hard money lender or credit union that you work with to fund your deals? it seems that everyone has tightened up or increase their rates for most of the part.
Any leads would be greatly appreciated. I am in california.
0 Reply
Patrick McGrath
Rental Property Investor · Westminster, MD · Member since 2014 · 165 posts · 221 votes
6y
@Paul DeSilva
We are continuing to buy properties. Currently working on closing a 4 unit property in September and we just had a tenant move into the property we purchased in April. So things are steady moving along.
1 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Leonel Lerena We do not have any contacts in California but the forums and networking sections on BiggerPockets are an amazing place to look for info.
0 Reply
Paul DeSilvaPro Member
OP
Investor · New York, NY · Member since 2017 · 148 posts · 252 votes
6y
@Patrick McGrath Congrats! keep up the good work and good luck with the closing!
0 Reply
Carl C.
Investor · New York City, NY · Member since 2014 · 289 posts · 374 votes
6y
We closed on a four unit property two months ago. We went into contract just as NYC shut down in march and we were wondering if we should have held off for a better price. Turns out that if we had waited the price would have gone up not down. Tenants have so far all kept paying rent as they are all still working. We are very conservative with our assumptions when looking at deals so I'm reasonably comfortable that we will be fine. That said, our W2 income can cover expenses if things really go haywire. I kind of think of this as dollar cost averaging with stocks. If you are really careful with the deals you go after, just keep going and do what works for you. Ignore the noise around you as much as you can. (deleting facebook four years ago was a big help for that)
3 Reply
John Fish
Rental Property Investor · Philadelphia, PA · Member since 2020 · 37 posts · 21 votes
6y
@Paul DeSilva I have no choice but to buy with my 1031 about to expire.. plan was always to buy and hold.. I bought duplex in Philly in a solid rental neighborhood with large appreciation upside low cash flow but rather have solid property then higher risk. Cap rate is about 4.8%
0 Reply
Todd Pultz
Rental Property Investor · Dayton, OH · Member since 2019 · 293 posts · 440 votes
6y
@Leonel Lerena I like the guys over at Lima Capital.
1 Reply
Kris L.
San Antonio, TX · Member since 2019 · 930 posts · 836 votes
6y
@Paul DeSilva
I’m Trying. Put in three offers this week, but market is crazy, so nothing yet.
1 Reply
Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
6y
@Paul DeSilva I am always looking for rentals. Short term issues will not stop my long term plans.
McCaw Property Management4.4902 Reviews
Website View Page
3 Reply
Joe Cassandra
Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
6y
Closed on a rental last Friday In Woodstock GA...closing on 1 rental in Cartersville and 1 flip next week in Kennesaw GA...and another rental at end of month in Acworth GA.

Market could dip 20% and we'll still have equity.

Only buy 'my-gut-tells-me-it-is-a-good-deal' properties...

Don't fudge around numbers.
3 Reply
Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
6y
@Whitney Hutten, That is the greatest sagest comment I've ever heard - "You can always overpay next year if asset prices haven't dropped"!!!!
Awesomeness in one sentence!
The 1031 Investor5137 Reviews
Website View Page
3 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
6y
Originally posted by @Paul DeSilva:
Hey BP,
Who's currently buying rental properties?
-Are you at all worried about prolonged eviction moratoriums, rent freezes, a second wave or anything else that they are talking about in the media?
-Or are you marching forward, steadfast if the opportunity makes sense and the numbers meet your criteria?
Personally I fall into the latter but am proceeding with more caution than usual. Seems to be a lot of mixed emotions in the forums of late.

I am continuing to make offers, but have attempted to account for the increased risk. I have placed 3 offers since Covid; 2 in the last 2 weeks. The offers have factored in an increased risk level. The first offer was accepted, but we pulled out during DD due to an issue with the value add (we did not pull out due to Covid or any other risk that we should have known about at the time of the offer). The other two offers were rejected, other offers were accepted.
My problem is that there are many investors that are making offers as though the risk was the same level as it was 8 months ago. They are taking risks that I am unwilling to take.
My current project was projected at 6 to 8 months and for a few reasons is going to take ~12 months. One of the reasons is the Covid related slow downs. The other two is 1) we fired the initial abatement contractor so abatement took way longer than projected 2) because we had rent protection (we are getting paid the rent for the empty units) there was not a huge need to push the contractors harder in this time of Covid. if it were not for us getting paid the went, we would be driving the contractors harder. Point is, things are slower and different than they were 8 months ago.
My last offer had $450K to $500K of projected rehab work ($40k to $50k just for abatement) with a lot of risk. My projected profit would have been $100, to $150K. A 10% decline in value would have resulted in a $10K to $60K projected profit. This on a purchase that would have had $750K to $800K of costs not including holding or selling costs. I do not know the price of the accepted offer. I do know that we were $50K above another all cash offer (so I know we were not the lowest offer). For us, it was too much work/risk for a higher offer price. Prior to Covid, I would not have accounted for a potential 10% decline occurring in the time it would take us to rehab.
In summary, we continue to make offers but the increased risk is reflected in our offers which has resulted in zero purchases this year.
1 Reply
Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
6y
Columbus, Ohio is still going strong. No eviction moratoriums and property values climbing.
[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
Website View Page
3 Reply
Javier Perez
Member since 2018 · 51 posts · 13 votes
6y
I'm absolutely not buying anything other than cash right now. And honestly, holding on cash offer buys as well unless its an outstanding deal. I've already had to deal with two tenants not paying and using Covid as an excuse when they were still working and not affected by the pandemic. One was ousted by their boss. The other tenant was ousted by their roommate. One tenant was taking the others half of the rent and not paying any of the rent to us. So aside from the guy not paying rent when he was working he was also stealing from the roommate. And yes I did my due diligence and credit/background on all these tenants.

These government blanket moratoriums are creating a huge problem with people taking advantage and testing the waters to see what they can get away with. Even with the people who are actually affected, how has it become the landlord's responsibility to bail the tenants out.

If there is a great deal, I will definitely jump on it. Otherwise, I will wait until at least they put some realistic moratorium or some form of rental assistance for those that really do need it.

4 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.