INVEST NOW OR WAIT A COUPLE MONTHS??

[Sebastien Beauboeuf]

Hey I'm a new investor in Chicago and had plans of buying my first property this summer. I've already started walking properties and I'm looking for a house hack opportunity on the north side of the city. The Coronavirus has caused the economy to enter a bear market and have many investors predicting a recession this summer or fall. I've been hearing about a recession the past 4 years and I didn't plan on waiting for one to start investing. But with things being the way they are right now and all signs pointing to a down turn (businesses closing, people already losing jobs, feds lowering rates to zero, feds quantitative easing, people having to stay home for who knows how long, etc.), is waiting a couple months the better decision to make? I have an emergency fund + reno budget and I'm only buying if the property cash flows (maybe not while i live in it because prices are so high on the North side, but definitely when it's fully rented). So what I'm really wondering is if I should wait 2-6 months in case property prices drop and buy cheaper. Curious to see what everyone thinks. Thanks

[Abel Curiel]

Originally posted by @Sebastien Beauboeuf:

Hey I'm a new investor in Chicago and had plans of buying my first property this summer. I've already started walking properties and I'm looking for a house hack opportunity on the north side of the city. The Coronavirus has caused the economy to enter a bear market and have many investors predicting a recession this summer or fall. I've been hearing about a recession the past 4 years and I didn't plan on waiting for one to start investing. But with things being the way they are right now and all signs pointing to a down turn (businesses closing, people already losing jobs, feds lowering rates to zero, feds quantitative easing, people having to stay home for who knows how long, etc.), is waiting a couple months the better decision to make? I have an emergency fund + reno budget and I'm only buying if the property cash flows (maybe not while i live in it because prices are so high on the North side, but definitely when it's fully rented). So what I'm really wondering is if I should wait 2-6 months in case property prices drop and buy cheaper. Curious to see what everyone thinks. Thanks

 Great question!

If the property cash flows and the #s make sense, I would take advantage of the low rates and buy now. In a few months, rates could be much higher and the numbers may not make sense anymore. 

Consult your mortgage professional, as rates may have hiked up in the last few hours.

Best of luck to you on your first deal!

Abel