Is this good time to purchase first rental? (First time buyer)

[Alex Xu]

Hello guys! I'm looking to purchase my first rental property near Harrisburg, PA, sounds exciting, but I would love some guidance.

The good news are:

• The interest rate is an all-time low; I can get pre-approval between 2.25-2.50% (15/30yrs loan)
• The property I'm looking at being on the market since late June with only 2 offers.
• I ran the number. It makes sense to me.

My concerns are:

• Current laws do not allow eviction or foreclosures until December 31, 2020. But data shows the housing prices might drop 10-20% in Q1 or Q2. Just like the 2008 housing market crash
• The unemployment rate is still at an all-time high.

My questions are:

• I don't know if I should be more patient and wait until next year when the price drops and then buy when the property price drops.

• Or maybe wait until foreclosure houses on the market next year and buy at a discounted price.

• I am aware that every state/area is different, but some opinion and guidance would be beneficial!

Also, what websites do you use for data/facts on house inventory and price treat over the past few years?

[Corby Goade]

Welcome! I certainly understand your concerns, but waiting for some external event to occur is never a viable option. For instance- I have clients that didn't want to invest five years ago because interest rates were too high. Now they are waiting for prices to come down. There's always a reason to be fearful. 

There are lots of newbies who are worried about the eviction moratorium- it's true, there are people out there who are legitimately struggling right now, but if you screen properly and manage your tenants professionally, you can mitigate that risk. We manage approx 100 properties and only had one (normally very excellent) tenant struggling with unemployment and paying rent. Our general manager helped her apply for supplemental rental assistance and she was awarded funds and all is good. 

Jump in, act professionally and treat everyone along the way professionally and all of the pieces will fall in to place. 

Happy Investing!