Should I keep buying SF rentals in today's market?

[John Delia]

Hey all,

I'm sure this has been discussed but I'm curious how other investors are handling today's market.  While the interest rates remain very low and are highly beneficial for long-term rentals, property values have been increased and there has been greater discussion of an upcoming bubble.  Are other investors continuing to buy rentals now at a higher price with the lower rates or are you looking to begin purchasing once the property values come back down and more than likely look at financing at higher rates?

I currently own 2 rentals and am in a great position to purchase an additional 4-5 financed rentals in '15.  I'd like to take advantage of the low rates but don't want to find myself upside on my mortgages a couple years from now.  I plan on holding onto these properties for 5-7 years until I can look at a 1031 option so I'm not sure if I should be concerned about the lack of equity if the property values depreciate in the meantime.

Any feedback is greatly appreciated!

Thanks.

[Brant Richardson]

I'm moving forward with more purchases in KCMO. Similar price range, ARV 80-100k. I plan on holding longer than 5-7 years though. It would be nice to have some cash on hand to use if we did have another crash but I am not ready to sit on the side lines waiting.