How to be on safe side from forecasts of 24/25 housing issues?

[Kal Wol]

Hello awesome BPs

I have been learning quite a lot in the past couple of months and also putting some offers, though they didn't go though, and I am still in the process of pursuing that.

I am in the DC/MD/VA market to proceed with the conventional and to the house hacking. I can't, for now, consider the out of state market as I can't move and also I am a bit skeptical to move on the investor side to put large amount and give it a try. And the area I am looking at happens to be expensive for any of cashflow.

In the meantime, there are predictions based on the credit card loan, the job market and related stuff that 2024/2025 will be showing greater impact on real estate on the negative side. Probably you might have heard about it. And as a newbie, I keep getting to every news and start to hear that. Actually, it is funny that it was like that for 2023 also - it is just getting a bit more for the upcoming years I think.

That is not what I am afraid most. I will still continue to offer based on the number that works for me though it might be lower price. I don't want to lean on equity, I want to at least breakeven on the house with all the expenses covered: mortgage, vacancy, cap expense..  

What I wanted to know is, what are the tools and strategies you awesome investors use if housing issues happen? Incase if you had been investor in the great recession, how did you deal with it? Is that possible to negotiate with the bank on lowering/renegotiation or forbearance? When housing issues happen, does it also happen to renters and do they in general lower/stop rent, vacate? How to deal with this if you have any experience?

Also do you see, if you have any experience in the past, any indicators that shows what is coming at all - like good or bad housing and preparing on those accordingly. I am sure in both scenarios investors can benefit but we have to which direction we are heading to benefit or at least not to loose much.

All I am trying to do is lower the risk what I am getting into. Hopefully you will see it from the eyes of the newbie and understand it. 

Thanks a lot for all your input in advance.

[Bjorn Ahlblad]

Impossible to know where the market is going and when. If you can never be forced to sell, you will probably do OK. That means have enough money and don't be too leveraged, so you can survive the market downs. All the best!