Now that you have memorized the basic strategies of investing in a separate article on this web site………it’s time to look at current market conditions and what we should be doing.
The current market is in the most serious downturn I have seen since starting my real estate career in 1977. On a positive note, we have the lowest interest rates available since the 1960’s. I can even recall thriving in a real estate market in the early 80’s when mortgage interest rates were 18%!
Remember…..money can and will be made in “ALL markets”. You must have staying power, i.e, cash liquidity, and purchase properties that will do well in the long term. My definition of long term is at least five (5) years.
Bank owned properties have been coming on the market at very attractive prices…..prices are the same as they were five or six years ago in many instances. Rents are falling due to unemployment but not as much as prices have fallen, thus an attractive cash flow is possible on many properties currently available.
Duplexes for $180,000+
Condos in the low 100’s
SFR’s 2000 sq.ft - high 100’s
Multi-Family with cap rates at least 6% or more.
Monitor the market and work with a Broker that knows the area, the properties, rents and market conditions.
There is almost no new construction being completed. At some point, existing inventory will decrease substantially, and demand will increase for existing properties, for purchase as well as for rent. Many reports project hyper-inflation…….I won’t go that far yet, but the normal curve of supply/demand will swing back in favor of investors, insuring a nice profit….especially if you have a long term fixed rate loan at today’s interest rates.
Hi, I'm Jeannie. For over 25 years I've helped investors make money in markets both good and bad. 
