Strategy for my first RE investment during COVID

[John Williams]

Hey all - I've been thinking about real estate investments for several months now and learning a lot from this forum. I'm interested in finding a SFH property to cash-flow. I'm too nervous to buy an out-of-state property as my first investment, so I want to stay local (Raleigh/Durham, NC area). The problem is - this area is a seller's market and I haven't been able to find any properties that meet my criteria. (I could make a nice return on a fix-and-flip, but my full-time job keeps me very busy, and I can't invest the time in a rehab.)

So in a nutshell, I've been waiting for a market correction so I can find properties at better prices. Do you all expect that COVID will result in a reduction in home values? With 30m+ people out of work, it seems there will be a wave of foreclosures in late summer (after the 90-day mortgage forbearances have come and gone).

So how do I play the market? Should I wait until the summer/fall and begin looking at foreclosures? Or are there other strategies you'd suggest? 

[Corby Goade]

Don't wait for a market correction- lots of new investors wait for something to happen and it never happens, so they spend their life toiling away, just waiting. There really hasn't been much of an effect on the real estate market from COVID- in all actuality, nationwide, inventory has gone down but buyers are still out there. My market set a record high in April for the average cost of a SFH. Maybe prices will go down in July- but maybe we will set another record then, too. The fact is that it's a guess- whether you are an economist or never bought a house, we are all still just guessing.

My advice- decide what your buying criteria will be- make it reasonable- and buy when you find something that matches up. Don't worry about what the market is doing- worry about your personal financial situation, the specific property you are looking at and whether or not it will get you one step closer to your long term goal. That's it- don't overthink it, you have to jump in when you find the right deal. 

Best of luck!