Should I Buy or Walk? Covid-19

[Ricardo Camacho]

I’m currently under contract to purchase my first investment property and I’m expected to close by next week. With everything that is going on I’m starting to wonder if it’s smart to move forward with the purchase.

My plan was to purchase the property with a 20% down conventional loan and rent out the property. After all expenses: mortgage, cap x, vacancy, management fees, I will cash flow about $200.00.

There is a lot of mixed messages floating around the internet so I’m torn between walking away and sitting on my capital, or just moving forward and going with the flow.

Best case, I cash flow $200 after about 60 days of working on the property and life continues as normal with the market not changing much.

Worst case, I can’t find a renter, housing prices plummet and I’m smacking myself on the head wondering what I’m going to do with an upside down property.

Any thoughts?