Taking advantage of the market crash

[Samuel Chua]

Assuming the market crashes again, both the property and the rent is going to decrease by significant amounts. Hence, should i buy a property based on its potential value? Or based on its actual rent, during that crisis. This is because, if i base it on its potential, i might lose out during the crisis but gain much more when the market slowly revives. It would be amazing if you could guide me on this, thanks!

[Kyle McCorkel]

@Samuel Chua

How would you know the value of the property after the crash? You’d have to make too many assumptions and guesses.

You should base all your investing off what you know RIGHT NOW, based on current conditions. Then stress test your cash flow to make sure you can withstand a 20%-30% drop in rent or vacancy of 20%-30%. And also have plenty of reserves.

Apply that same logic whether times or good or bad and you should be covered.