Buying First Property in This Market

[Sean Padden]

Newbie here with zero real estate investing experience. I am interested in getting started, but wasn't sure if it was a bad time to buy my first property because prices are high right now in the overall market. My plan is to house hack for my first property if that makes any difference. I recently spoke with someone who told me now is always a good time to buy, but would love to get some more opinions. Would it be better to wait until the market cools off a little to buy my first property? Does it just depend on the deal? Thanks in advance! 

[Danielle Jackson]

Congrats on getting started. 

Your question is a million dollar one. Many perspectives. My opinion, during an inflationary period, real estate is a good place to invest. Rising rents, depreciating debt, and opportunity cost of NOT investing. 

You will need to have a strategy - buy and hold vs. flip? Turn-key vs. value-add? Know your market inside and out, down to the neighborhood you are buying. There are good deals out there, but unless you narrow down markets and investment goals, it can become an emotional purchase quickly. Pencil out what a good deal looks like from a cash flow perspective, and make sure that whatever you buy (no matter how much you love it!) it fits within those parameters. That is the mistake so many make. 

One other suggestion, invest for cash flow don't invest banking on short-term natural appreciation.