Real Estate Market Crash Preparation : DSCR

[Keeya WangJones]

Hey BP Community,

I'm reaching out for some of your savvy insights as we navigate a potential market storm. My partners are feeling jittery about jumping into multi-unit properties (think 2-4 units) before a possible market crash. Personally, I'm all in on the location and amenities game for max rental cash flow. But let's face it – safeguarding our equity is crucial.

After all, we need that equity to fuel our growth strategy, right? We've already agreed not to touch high-risk states like my home turf, California – 100% on board with that. Now, the big question is: How are you all prepping for the storm clouds on the horizon?

I'm eager to tap into your collective wisdom: What tools and strategies are you using to navigate the market and make those savvy comparisons? I've got my eye on crunching numbers with the Debt Service Coverage Ratio (DSCR) to keep ahead of any potential market dips.

Cheers,
Keeya

[Matthew Crivelli]

@Keeya WangJones

What signs are you seeing that indicate a potential market crash? We have low inventory and steady demand. We also are seeing dovish FED meetings where we are being told that rates are going to drop by the end of the year. If anything, I see asset prices continuing to rise.