Investing during Covid

[Kristin Cooper]

I am a relatively new investor with just a few properties under my belt.  I live in Northern CA and have had success investing here, however I am finding that there are much better deals to be had elsewhere and then Covid hit.  My inclination is to be patient and take advantage of the fall out.  Zillow reports that close to 4 million mortgages are in forbearance as of April 2020. 7.3% of all mortgagees can’t pay their mortgage.  Many are trying to Refi, but may not be able to given the current situation.  As we know, this will tighten up lending rules.  I am intensify my home search before this situation worsens.

I have been looking at some of the top investment markets.  I know there are several locations in FL that come up as top areas to invest.  I have concerns about many of the FL and other pan handle areas being hit by weather related calamities, ultimately increasing homeowner insurance costs in these areas.  I would like to know if other people take this into consideration when investing, and if so, how do they align their investment strategy and avoid heavily hit natural disaster areas?

I know that TX, parts of NV and other areas have been heavy in traffic of investment due to high returns.  Are others concerned that cities such as Denver, Dallas, Houston, Las Vegas, Tulsa, Seattle, will have to face their new reality of low oil prices and minimal tourism for 2020?

With all of these considerations do we invest now of be patient?

Do we overlay the map of high return with natural disaster and COVID considerations - and how is this best accomplished?  has anyone done this work?

Best regards to you all  -  I appreciate the valuable insights of this community,

Kristin

[Jonathan Greene]

There are deals out there now in all markets, but I expect the best deals to start coming late August and into the Fall due to forbearance issues being resolved or dried up by then. Now, since there is some assistance out there, homeowners can skate by a little while longer, but once states open more we will see how the markets react and if there is a second wave that takes it down again. In most of those markets you mentioned, everything is still selling. There may be less inventory, but demand is still pretty solid if you look at the most recent nationwide stats.