The next economic crash!

[Noel Fernandez]

Hello BP members! I know there’s a lot of investors and newbies (wholesalers) in BiggerPockets So this question is for experienced real estate investors that have been in the game for a while. I want to know what will your strategy be when the Market crashes?

[Thomas S.]

Status quo. Although a correction is coming the impact on housing will not be likely as drastic as the last one. A correction will likely only bring the freight train of appreciation, that has driven prices well above true value, back down to a more realistic level. Areas with the highest appreciation over the past several years will likely see the greatest correction.

To be a stable investor avoid faith investing in high appreciation areas and concentrate on multi unit properties where value is driven by rental income. Safest to stay away from SFH investing which will be most effected by a financial shift. Home prices and tenants family income will be impacted more in the SFH rental market.