The following is my professional opinion. As always, do your own due diligence and reach your own conclusions.
- We still have an extensive window of opportunity – at least 12 to 18 months. Great deals are available now and will continue to become available. You just need to work harder to find them and move quickly to secure them. There are some great cash-flowing 2-,3-,4-plex properties coming available in the $60k to $150k range.
- Plan that you will need to offer below-market rents to attract desirable tenants. Make sure that your cash flow plan works at those rates and that you can afford to make the property a little better than the competition. This goal is still very achievable at the lower price points and with small multi-family properties.
- Be selective in where you are investing. You don’t want to be competing for tenants in an area where 80% of the homes are investor owned.
- Be very cautious if trying to “flip” properties. Don’t attempt this if you would not be comfortable holding the property long-term if you are unable to find a retail buyer.
- Invest for cash flow. Appreciation is the added bonus that today’s prices make possible. (Most properties we are acquiring today are at 30% to 40% of their peak sale prices.)
- Expect your buy-and-hold investments to be a least 3-5 years and possibly longer. Don’t expect any real change in housing values until the economy recovers.
Real wealth is built during times of economic challenge. Those who take action today will be the ones reaping the harvest tomorrow. If you are comfortable taking the challenge on your own, go for it. If you want a partner, I’m here – give me a call.
Geneva Real Estate & Investments