Feedback: first investment property during uncertain times.

[Andrew Santiago]

I am currently in the closing process of my first investment property. Originally everything was running smooth, the single family row home was in good shape and had long term renters I was looking to take over.The property had minor problems but what made the deal so intriguing was the tenants had been doing all the work on the property themselves and for a first time home owner/ investor it was an ideal situation.

Fast forward to now: Covid 19 has interrupted our every day life as well as the closing, my closing date was pushed back from april 13th to approximately may 22nd and now the tenants have advised the owner they will be vacating the property as of may 2nd. I’ve been loosing sleep trying to decide whether or not this is a good time to try and go for my first investment or maybe this is a sign to hold off and see how everything plays out.

Looking for advice I’m young in the game and I’m just trying to hear as much feedback as possible from different minds.

Thank you in advance

[Blake Dailey]

Hey Andrew, I think you have to rely on your numbers. If you know you are getting a really good deal on the property then getting it vacant might be better so that you can make the necessary repairs and get higher rent with tenants that you thoroughly screen yourself. Also make sure you have at least 6 months of reserves to pay the expenses should you find yourself in a worst case scenario. If the numbers tell you that you have a good deal and you have adequate reserves to weather a storm then you should be in good shape. And if you have a nice repaired unit ready for rent, you can always lower the rental price to get a tenant to stop the bleeding.

Another thing is you could renegotiate the price or terms before closing to work more in your favor. After all the deal has changed, it sounds like significantly, because of covid. 

Best of luck!