Investment Direction for First Time Investor

[Refayet Anzir]

Hi guys, 

I am looking to invest in my first rental property with the goal of building a rental portfolio in the coming years. Bigger Pockets has been  a great resource of knowledge so far but the information on the internet is so overwhelmingly broad that I am finding it quite challenging to set up an action plan.

One of the places I have looked at is Roofstock to buy out of state properties in the affordable range within 100k. I am based out of Houston so Houston is also an option for me but I am willing to to look other cities and states depending on its future prospects.

If I could get some insights on what markets you have found to be the most appealing in recent time in terms job and population growth , stable rents and healthy returns , it would be a massive help for me find a starting point for doing my due diligence. I will mostly look at Turnkey Properties as I lack the experience and time to Rehab properties for better returns

Secondly,  due to the economic downturn and high unemployment rate overall I am feeling that we may see a housing crash some time next year. For a first time investor like me , would you suggest that I play the waiting game or am I overcomplicating things?

Thank you so much.

Refayet

[Ali Boone]

I don't expect there to be a crash. Everyone thinks a housing crash accompanies recessions, but....fun fact....of the last 5 recessions (including the Great Depression), only 1 of them had a housing crash associated with it, and that was the 2008 crash because the entire thing was due to the mortgage crisis. In addition to that, housing demands for residential properties has gone up with covid (de-densification, people working from home, etc.). Housing prices have been going up, not down. Demand is definitely up pretty noticeably. Residential real estate seems to be booming...but what is taking a major hit is the commercial real estate market. People are desperately trying to get out of crowded apartment complexes, which is driving them to the residential properties.

Anywho, for turnkeys or exploring your options or whatever... what would be most helpful for you? Like what information would help de-clutter the overwhelm of info you're getting?