The number one question to ask yourself is why you are an investor in the real estate market. Are you or have you invested to have monthly income from your rental property? Or, have you purchased to fix and flip?
It’s important to note that fixing and flipping is not investing. It is purchasing wisely to capture equity quickly after rehabbing and expenses to then go on and purchase the next property and so on with a continual repurchase to not incur taxes while building your wealth.
Investing on the other hand is purchasing when it makes sense that your cost of purchase plus your cost of repairs will be offset by your monthly rent coming in. investments are all about math. you have rents which are going up, expenses which are going up and interest on the debt that is going up.
if you’re in for short term capital gain it’s not an investment.
long term investments are not easy to find but they are still available. you have to weigh the cost of income minus expenses to see if cash flow is there. if cash flow is there you don’t want to miss the opportunity. if you’re trying to time the market it is short term capital gain which is different and with that there is a different game plan.
Cash flow is the key even when the market goes down. if it is cash flowing now unless you take on considerable debt with a cashout refinance, you will be fine because rents are only going to keep going up.
it’s important to not get caught up in the conversations around 10-20% corrections in reference to your property investment because one does not impact the other. if you are cash flowing now you will continue to cash flow during the correction because you are still collecting rents.
it you are looking for property to invest in which you in turn want to cash flow, call text or reply to this email so we can talk about those possibilities in conjunction with the expenses that go with the investment.