Louisville Real Estate Market

[Andrew Fazzone]

I am hearing a lot of different suggestions on when the right time to buy investment properties is.  I would greatly appreciate some insights on how to determine if the real estate investment market is ripe in a certain area.  I am having some healthy dialog with my business partners over whether now is the time to buy, or if we should wait out the market.

Appreciate the help from more experienced REI's.

Thanks,

Andrew

[Michael Seeker]

@Andrew Fazzone- The only "right" answer regarding when you should buy is that you should do so when the numbers/property meet your criteria.  You're unlikely to find 2 investors with the same criteria and that's something you (along with your partners) will have to figure out for yourself.

Whether or not an area/city is "ripe" is also a very vague question.  It depends completely on what you're looking for.

As to whether or not you should wait...I'd ask what is it that you're trying to wait for?  Prices are definitely not at lows, but price/rent ratios in most areas are reasonable/normal.  I wouldn't say prices are overly inflated and poised to come crashing down.  On the other hand, if you bought property 8-9 years ago at the trough of the cycle, then prices today would seem very high (just like if you bought any number of stocks at that time).

It's good to jump in and get your feet wet and figure out what type of investment will work best for you.  Even if you overspend a bit on the first deal, it'll help you recognize a steal when one comes along.