Is now the time to invest in Texas?

[Sabine Franklin]

Good day, I searched the forums before posting this, thinking it would have been discussed here before. However, I did not find anything posted in the last 6 months about buying real estate in Texas. Given that many tech companies are moving into the state, is this the time to invest in one or two small multifamily units? I’m concerned about the housing bubble and getting in now when prices are high. I am from the Northeast, so I appreciate thoughts or feedback  from those in the area.

[Deanna Lawrence]

Hi Sabine,

Like they say about trees... The best time to plant one was 30 years ago. The second best time to plant one is today. Real estate is the same.

If you buy your properties right, meaning they have positive cash flow, a conservative LTV, and you have enough money in reserves, the purchase price isn't really an issue. You should be able to weather a decrease in property value if you invest conservatively.

Where most people get into trouble is when they are over-leveraged and have nothing in the bank for a rainy day.