Is the housing market going to crash in 2020?
Here's the truth: NO ONE KNOWS!!!
NO ONE. Not Warren Buffett, not Donald Trump, heck not even Brandon Turner.
But if you were like me as a beginner real estate investor it's easier to just wait to start investing and not go out of your comfort zone to buy your first rental property.
For 4 years, I said to myself, “Oh yeah I am waiting for the market to crash before I buy, until then I am saving.” … and then have it never crash. Here's 2 factors why you should not care if the market will crash or not as a beginner buy and hold real estate investor.
The biggest thing for you is monthly income that you get from the property. You don’t really need to worry about the value of the home going up. I was letting the fact that I wanted to find a magical area where I have great cash flow and appreciation rather than just starting with what is most important to me: cash flow. I plan on having the property long enough to ride out the bottom of whatever crash that comes and watch the home value keep rising!
Now factor two: When a market crashes, people lose jobs. When they lose jobs, they can't get a mortgage because they have no proof of income. So they are forced to do guess what. RENT! And what does that mean, if more people need to rent.. Demand goes up and so does your cash flow if you raise your rents!
So you do your math correctly and you are cash flowing at the percentage you are comfortable with, then you have done everything you can to not have to worry if the market crashes because you will be making monthly cash flow and you can wait till the home values keep going up.
All you need to do now is go out and buy that first house. Here is a google form that will give you an answer if you should invest now or not based on your situation!
If you are looking for a mentor to guide you through the process of buying your first investment property book a free session with me here: https://calendly.com/investarters/free-consulting-session