New Landlord 1 year in seeking advice for next steps.

[Jordan G.]

Hi all,

I got in this game about a year ago, armed with some DIY experience, and help with a property manager, and real estate agent, I closed on a solid Duplex in an A-Class urban area in my market. The house I purchased needed a little cash infusion, but now operates well. I am cash flowing $430/mo, which includes paying a property manager, and its on a 15-year note. Not to mention most of the major repairs have been completed up front. The house is in great shape, and my guess is I may have increased the equity on it by $62k. Tenants on both sides are solid, life is good. 

You may be wondering, what are you concerned about? Well, I am starting to wonder how to proceed, and I am questioning where we are at in the cycle. Sure enough, I knew buying in 2019 prices were going to be relatively high, and today my house sustains itself. However I am wondering when the recession comes, and what is going to happen to my rent prices? My rental is located in one of the most popular areas to live in our city, and literally is off the market in less than a day when we list the unit.  I like to think that even if prices fall, that my solid area and good quality house will carry me through the recession. I cant be too sure though.

I guess I am wondering, for the people out there who bought in 06,07 right before the bust, how did you survive as a landlord? What happened to your rent? what challenges did you face? What would you have done differently?

I also am considering expanding next year, with a Cash out refi, along with a Heloc on my primary. I am a bit nervous with the current economic situation, I do not want to be stretched too thin. I know this winter, fall will be a prime time to scoop of some deals with landlords who want out. But I am very cautious.

Summary:

Experienced landlords, what happened in the past, how did you get through it? What kind of rent fluctuation can you see in a recession? 

What do you think the 2-5 year outlook looks like on real estate? How do you think rent prices will react? what about house values? Do you think the next correction will differ from the 2008 crisis? Interested in anyone's opinion.

Thanks again in advance, I appreciate any feedback.