Should I buy a house in this market?

Question

I’m 24 years old, and after school have been working offshore for 2 years. I make great money for my age. I recently moved back in with my parents after renting 4 years because I am gone often (typically 4 weeks gone and 2 weeks at home on break)

I really want to invest my money in real estate but am just not sure if I should wait for the market to turn as it inevitably will... I have the capability to do BRRR as I am a jack of all trades.

Thoughts..?

Cameron Tope · Answer

@Clay Walker That's great you're making great money and wanting to invest it already!

I've never tried to time the market. If you're looking for investment properties, buy one this year and then save up to buy another in the next year or so. Rinse and repeat.

It's similar to dollar cost averaging into stocks, where you spread out risk by buying every week/month/year.

Also, you're not going to get rich off your first deal but you can lose your rear-end. So do what you can to minimize the downside. That way if the worst case scenario happens you can still continue to invest.

Hope that helps!

Cameron Tope · Answer

Clay, I believe anyone can manage one property - especially if you make it a priority and have the contacts to do repairs and maintenance.

HOA is good and bad. I have properties in HOAs and outside HOAs. They'll send tenants letters to ensure they keep the property nice but they'll also increase fees if they deem it necessary.

I've never heard of a HOA locking their fee in.

The way my last mortgage for a primary residence was written stated "intended to live in the property". Intentions can change. It's a grey area and the odds are no one is going to come by and make sure you're living there. I'm not telling you to knowingly violate the agreement but similar to sub-2's the bank rarely does anything.

Best of luck!

Anthony Gayden · Answer

You may find that there is never a “perfect” time to invest.

Run the numbers and if they work do the deal. Investing is all about getting out there and doing it.

Clay Walker · Answer

@Cameron Tope

Thanks for the input!

I found what looks to be like a great deal. 4bed 4ba near a university.

This would obviously House college kids, I am a recent graduate myself so I think I would be good at screening tenants but:

Do you think I could “manage” the property myself? I would be away a lot, but I do have friends that could handle problems if they arise.

It also comes with an HOA, which could be a good thing, or bad? I’ve heard HOA can jack up rates and basically do as they please... any idea if I could lock in a rate with an HOA?

Also, I would like to purchase this as a primary residence... but rent out the whole unit. Any idea on the legalities there..?

Thanks everyone for your advice!!!

Should I buy a house in this market?

Most Popular Reply