Quote from @Gabe Morrell:
My wife and I are certain future real estate investors (Minneapolis-St. Paul greater area) who would love to enter the market sometime within the next 1-4 years and acquire our first rental property. We both are drawn to either single family long term rentals, or STR's in the right locations.
Right now we have $20k cash available for immediate investment, with the ability to increase that to $60-70k in the next 3 years through savings and bonuses at our day jobs. We also have approx. $140 equity in our primary residence that we'd be open to getting a HELOC on (would love feedback on if people recommend this or not).
Given our limited available resources for down payment, high home prices, and higher interest rates, is now a bad time for first time investors to enter the market? Is there a chance that rates and prices decrease in the next 1-4 years as our cash reserves increase, thus creating a better scenario for us first time investors?
We would GREATLY appreciate feedback from experienced investors on how best to start out on our REI journey.
Starting out is always difficult to time. If you are seeking for prices to drop, I would not anticipate a crash with the hopes of timing the market. Rates should decrease, but the issue with that is that when rates drop, people can pay more. So the rates coming down does not help investors as much as many people are planning on.
I would argue you should also be looking for a property that you can take down. If you are marketing for deals, there is seller financing and other creative ways to finance the right deal.
It comes back to the old Brandon Turner saying from his time on the BP Podcast, if I found you a $1,000,000 property and could sell it to you for $500,000 with no strings attached, you would figure out the financing!
Best of luck in your search, if you need assistance along the way, do not hesitate to let me know!
