The Defeat of a Potential Bubble

[Brandon Motuk]

I'd like to get everyone's thoughts on a theory I've been pondering....

I'm in Central PA and the market is and has been red hot for quite some time.  It has caused prices to increase but, nothing astronomical.  What the tight inventory has done though is make it very difficult to purchase anything- either as an investor or owner occupied.

So everyone thinks- when will it end?  When will buyers dry up and inventory increase?

I, for one, as well as many other investors in this area would love for the bottom to fall out of the market to create a buying opportunity.  As a rental property owner, I know rents won't decrease much if that happened.  In fact, they could actually increase.  As for the value of my properties, I don't plan on selling anytime soon so I would weather the storm.

Additionally, I believe many investors (at least) are sitting on resources to be able to pounce on an event (opportunity) like this.

So, with all of that said, I ask the hypothetical question (at least for areas such as mine) if everybody is waiting on a "bubble burst" can it ever happen??

Would love to hear some thoughts on this!

[Kyle McCorkel]

@Brandon Motuk My stance is to stay actIvely buyIng but always stick to fundamentals and only buy properties that meet a strict set of criteria. Also to buy only properties where I can add value and/or have built-in equity as a bit of a cushion for if/when the market takes a dip. It’s not that I’m expecting to sell anytime soon, but I’d like to have the option to sell and the extra equity created allows me to do that. Finally keeping plenty of cash reserves and sources of capital open (lines of credit, private money). I use these sources to keep buying but position myself so they are only tied up short term until the refinance (for BRRRRs) or sale (for flips).