Is it a good time to invest in a multifamily [2 or 4plex]?

[Elijah Artman]

Hello BiggerPockets,

I'm planing to start with 2plex or 4plex in Sacramento area [buy&hold].
The only concern is that I hear rumors  of potential crisis upcoming year.

I'm planing to buy multi-family in with FHA , so that leaves me with very minimal cashflow ($0-100 whole building with all expenses considered), house price range 250-350K

should I buy now? or wait for lower prices? (which no one knows when to expect)

thx

[Bob Dreher]

@Elijah Artman

@Elijah Artman@Kennex M.  It is very easy to find a talking head or article that will speak of different economic events which are imminent! You will find 

1. 1. The "gloom and doomers" who tell you there will be a run on banks and you should only buy gold!  
2. 2. Then there are those who talk about global economic crises which are driving us all to deflationary times and interest rates will continue to drop. 
3. 3. The inflationary pressures being set up as the US economy continues to build up steam and wage pressures return driving interest rates upward.
4. 4. The strong dollar will cause S&P 500 type stocks to drop precipitously because of a drop in foreign earnings minus exchange rates.
5. 5. Drop in oil is good for the consumer driven economy.
6. 6. Drop in oil is bad for job growth and resultant spending in the consumer driven economy
7. 7. Etc..etc...

I could go on and on. The bottom line is that there are always good and bad reasons to consider investing. Fear and greed are the biggest drivers of action. As long as you make a sound economic decision for investing...you should be fine. Just make sure you do your homework for your specific sub-market...and the numbers support your decision.  Best of luck!