Cold Feet before buying first rental property.

[Shiloh Lewis]

Hi guys, I'm a new investor from California looking to buy rental properties out of state but I've recently noticed that I've been starting to psych myself out the closer and closer I get to buying my first rental property. I've been studying Real Estate for about 4 years now and feel that I am ready as I'll ever be to purchase my first property. Lately though I've been questioning myself if I should wait until it becomes more of a "buyers market".. I know there is never going to be a perfect time to jump into real estate but sue to rising interest rates along with other factors history shows another market correction expected to happen within the few years. I'm not sure if I'm getting in my own head or if I'm overthinking things. Any advice would be greatly appreciated!

[Gilbert Dominguez]

Throughout my 30 some year run as a real estate investor I have found that if you plan a steady but sure way to start and then grow your business will pay off in the end. In other word do not start by over extending yourself to the last dollar you can possibly spare. start small, get some experience, allow yourself to learn and then take the next step up. If you expect the market to take a turn then adjust yourself to the market that can withstand a market move downward but still provide you a positive cash flow. Don't start out shooting for the stars in a manner in which you lose a coupld of hundred dollars per month income its going to put you in a difficult financial position. 

It really does not matter what you invest in.  What I have found is that if you set yourself up to withstand market movements then you will  always be able to progress. If the market is high then buy a little lower and if the market is low then you will be ok if it moves higher just as long as you are not overly optomistic and depend on the markets movement to get you into profitability because even if that were to happen that can be short lived.

First i make sure that whatever I do I am starting out profitably and then I avaluate or check out my feelers for what the market sentiment is and any evidence of a market direction so that if the market moves in any direction I can either withstand it or take advantage of it if possible. 

The longer you are in real estate and the more assets under your control then you can be flexible and diversified. The name of the game is to win overall not necessarily every single time and in every single instance.