Is it a good time to invest in real estate? With the way economy is going, jobs lost, hiring freeze, even when you get tenants, what if they cant pay you?

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You shouldn’t be investing because you have no idea what’s going on in the economy

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Depends on the state and how easy you can evict them. Choose a landlord friendly state and it’s not too bad.

It’s hard to find cashflow after the Covid run up and the current high rates, but if you can find a property at the right price, it can work out fine.

This is a risk in any economic cycle, it’s definitely higher at this point than compared to 2 years ago but it never goes away. You can never fully guarantee a tenant will pay you every single month. If you aren’t willing to accept that, this might not be for you.

At the beginning of Covid who would have thought sky high house prices? Right now every early indicator says recession coming. Job loss would be the lagging indicator. House prices lagging indicator. Evaluate each deal on its merits. Personally I’m expecting higher rates in 2024, rates will keep going higher until markets soften and drive down inflation. So the deals in 2024 in a high interest market may favor those with cash. So leveraging debt may not be the strategy if rates are 10%. Where it made a lot of sense at 3%. I buy international real estate where rates are over 15%. We use owner financing, cash, but real estate prices are much lower. The strategies change as the market changes.

I think we’ve bottom out on prices, and rates will be in the high 5% range in 2024. Real estate is a great long term investment, so yes, I’d say buy now if your comfortable with adding it to your investment portfolio. Watch Barry Habib, he’s great at predicting where rates are headed. Most industry economists think lower rates will happen in 2024. That said, no one has the crystal ball. Historically if you hold onto real estate, it’s a great investment. Just look at price appreciation over the last 40 years. Of course there are peaks and valleys, but the long game, wins. Tenants don’t bother me in a landlord friendly state.

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