All Forum Posts by: Sharmika M.

@Sharmika M. Keep investing it! Real estate buy and holds will provide you with cash flow for the rest of your life! In a down market your equity will diminish until things return, so why not utilize that equity while the market is hot!

There are investment strategies you can implement that will factor in an economic downturn, like with multi-family. If you invest in apartment buildings and maintain conservative underwriting practices by purchasing for cash-flow, securing long-term financing & allocating adequate cash-reserves, you have positioned yourself well for any recession. In addition you can concentrate on areas that have capitals or universities/large colleges, (government & education can weather economic storms well). In addition you can look for area that have industries that perform no matter the economy, like with the insurance industry.

@Sharmika M. - Since you are posting in the Multifamily / Apartment Investing Forum - I would re-iterate the fact that multifamily real estate is a great investment as it can reduce some risk in regards to a down turn or "crash". I know people who have been calling for a downturn since 2015 that have been sitting on the side lines and they wish they hadn't now that they know the economy is so strong. I've also talked with many older investors who have been through several cycles and they don't see an end in sight unless interest rates rise...which we've already seen the fed pull back hikes for this year with a potential for lowering interest rates even more. Our group recently got a $16.5MM deal with 4.01% interest rate with 5 years I/O. Not bad.

We all are here because we believe RE is a key contributor to ones wealth and financial growth and independence. The more we learn the more comfortable we will be with our investments. Just keep educating yourself on the various ways to either pull from that equity and the various ways you can invest that capital. Good luck!

@Sharmika M. Have you been to any of the REIA meetings LA. I am guessing you are up north somewhwere.

@Sharmika M. A cash-out refi, and then sit on the cash waiting for either an amazing deal to come up, or for housing prices to pull back.

A HELOC sounds tempting as you won't have to pay interest until you need the money, but if housing prices do crash the bank will change the amount you can pull out via the HELOC accordingly. (plus you pay a little higher interest on the HELOC)

PS. I'm not saying this is the best thing to do. It depends on what your goals, risk threshold etc. are. If you can swing a 240k refinance and still be cash-flow positive and want to take advantage of expectant housing price pull back this strategy is certainly one to consider