Invest now or wait for recession?

[Marcos Carbi]

Hey guys, 

I'm thinking of going in on a duplex in a great, growing area of Fort Myers, FL. $380k, 2003 build, $30k of CapEx (paint, roof, AC, water heater), $3,300 monthly rent, $500 cash flow, 5% CoC return with a 6.125% rate.

I want to send an offer but my only dilemma is this recession we’re in/heading towards. The market the property is in is hot and has a lot of demand, but I wouldn’t want to get into it just to see the same duplex sell for much lower 6 months from now. What’re your thoughts? Should I go for it?

I’m reading a bunch of different articles on the future of multi-family homes so Im not sure what to think. Should I be waiting for lower prices? A part of me believes multi-family investments won’t be affected too much given they are investors with money, not primary home buyers.

I would tremendously appreciate your advice, thank you!

[Chris Seveney]

@Marcos Carbi

Those who wait for lower prices never buys. They will continue to want to get a “better” deal.

If it’s a duplex and the numbers work and it cash flows. The lower the price goes the better the numbers look and someone will come in and buy it. While we are going to have a recession it does not mean that has prices will crash. Will they continue to go up 20% year - no, but it doesn’t mean they will crash. No one knows what the outcome to pricing is going to be.

To me if I see numbers that work, I will buy