Rental market.....1 year from now?

Question

Hey everyone.  As I have mentioned in a couple of posts, I am leaving shortly for 1 year in Afghanistan.  My plan is to come back and jump into investing in rentals.  My concern is what the market may look like at that point, compared to now.  By the time I leave, come back and make my first purchase, it should actually be about a year and a half (Fall of 2010).  I am concerned that the gravy train we are seeing right now, will not be flowing as freely at that time.  What is everyones opinion on whether I have a legitimate concern here or not?  I understand that we cannot predict what it will be like at that time, just wondering what everyone's thoughts are.  By the way, I would love it if I could start in my own backyard (Denver, Aurora Colorado), but I will also be planning some purchases in the Indianapolis area.  So what does everyone think?  Should I be worried that I will miss the boat?

Rich Weese · Answer

Good luck.
    Real estate will always be there. I bought stuff in your area back in the late 70's. I had a 156 unit building on Dallas ave, I think in Aurora. It was called the Dallas Apts. It was old and not a great area, but it was profitable.
    Real estate is like a ladder. You just get on at a certain rung, go up a couple steps, and then get off and someone else gets in on that rung and takes it a few steps and then someone else.
    Stay safe and thank you. Rich

K W · Answer

Hi Claude - 
Hey, my son is at Fort Carson. His unit is just now getting back from block leave and heading over to Afghanistan as well - however he won't be able to go because he is on med-hold.

Please take care of yourself, and thanks for serving!!! And good luck with your investing when you return.

Kathy

Alex Aronson · Answer

First of all, thanks for serving, knock off a terrorist while your over there, and come back in one piece.

Secondly, it is always a good time to buy real estate as long as you buy right!  The majority of the 500 top wealthiest Americans made their money in or their money came from realatives who made their money in real estate.

The deal of the century can be found each and every week if you know how to look.

God Bless, come home, and buy some good deals!

Claude Hodge · Answer

Great to hear Mike!  thanks for the response.  I will just wait it out, and build my empire when I get back!  Thanks everyone!

Claude

Michael Rossi · Answer

You have nothing to be concerned about.  There is no best time to buy rentals and operate rentals.  In fact, if you're going to be in the rental business, you had better be able to operate in any market.  I bought almost all of my rentals during the boom.  Prices were going up, up, up; lending was loose as a goose; and I managed to buy rentals at pennies on the dollar.  We are now in the opposite situation.  Prices are going down, down, down; lending is tight; and yet you could still build a rental business is this environment.  In fact, I has someone call me last night with a house that is worth about $45k that they will sell for less than $20K.  I'm looking at it tomorrow.

Deals were there to be had during the boom and they are there during the bust.  Good deals are always out there!

So, go serve our country and stay in touch with us here at BiggerPockets!  There will be plenty of deals when you get back!

Mike

Claude Hodge · Answer

Well, you're right about that.  I had a deal that I was trying to line up, but it didn't pan out.  I think I would have felt better if I had at least completed one deal before I left.  Then I would know that I had something to come back to already working for me.

Claude Hodge · Answer

It is absolutely my pleasure Nick!  I love being in the service, but I am definitely excited about setting my family and myself up with something more profitable.  Besides being away from my family, the hardest part about deploying might be thinking of all the deals I could be making!  All in good time though I suppose?  In the meantime, I will do more research and picking up great advice form the awesome group on this site!

Claude

Nick J. · Answer

Hey Claude, this is off topic of this post but..............THANK YOU FOR SERVING YOUR/OUR COUNTRY!!!

Josh Bryan · Answer

Well it sounds like you don't have a choice but to wait until you get back.  If buying rentals is what you want to do, then do it no matter if the RE imarket is the same, better, or worse than now.