Recession Investing Strategy

[Fernando E.]

Hi BP,

It's been a while since I posted, hope everyone is managing well despite the bad macro economic condition

Wanted to get your insight on your investing strategy in this recession, are you buying or holding cash to wait out the recession?

I'll start, I was helping family to hunt down a good property in Austin Texas, SFR, close to the tech hubs, got pre-approved and started searching. We ended up slowing down in the search as the interest rates continue to rise and the deals are no longer working - cash flow negative. For my own investing, I was looking for property in the bay area SF, looking for price cuts but numbers still don't work here unless I sell my SFR to buy a bigger house where I can build an ADU and house hack.

Historically, the shortest recession ends in 6 months, the longest a few year ala great depression. Hopeful that it ends within 1-2 years. I think the Fed will continue hiking the rate to control inflation and destroy consumer demand. I plan to continue educating myself listening to BP, find some creative way to reach my investing goal, saving cash and getting ready. How about you, what's your game plan?  Thanks and good luck! 

[Nathan Gesner]

Quote from @Fernando E.:

When others are greedy, be fearful. When others are fearful, be greedy.

I spent three months looking in 7-8 different states. Everything was a feeding frenzy with emotional buyers, not wise investors. I haven't found a deal, so I'm sitting and waiting. If the markets don't improve, I'll find a syndication or I'll do some major renovations to my existing properties. This won't last forever, then I'll get right back into it.