Real Estate Investing During Recession

If you’re looking into getting into real estate investing during a recession, keep reading.

In our last post we talked about why it is beneficial to invest in real estate during a recession, and today we wanted to share some insight. 

So what are the tips & tricks of real estate investing during times like these?

The first thing to consider when getting into the market is to know what would work best for you. There are tons of investing options available, starting with different ways of investing, and to different types of buildings you can invest in.

Let’s take a look at some of your options.

There are single family homes, tiny homes, duplexes, triplexes, apartment buildings… 

Generally, the more units you’re able to rent out, the more income you will generate.

But it also means higher maintenance costs and more responsibilities, especially if you’re renting out to multiple tenants at the same time.

So now when you know your options, we can help you get started. 

1. Research, research, research.

Do your due diligence and research any properties you’re interested in.

The last thing you want is to find out if your property area is scheduled to be rezoned, or that a property has a seizable lien.

However you have to be careful to not get into an analysis paralysis – check out our post about how to avoid it. 

2. Location.

One of the most important things to look at is the location of the property.

Get to know the area, make sure it’s in high demand, and see if the rental rates would allow you to maintain a desirable profit.

3. Financing options

Compare all your options.

Pay close attention to interest rates and different loan options.

The timing of when you borrow can also make a big difference in the loan cost.

4. Cash flow

Cash flow means the amount of money that you get to keep after the expenses.

In a recession, keeping a larger amount in cash reserves may be necessary to cover expenses as they come up.

If you’re looking to invest in a part of a real estate project, pay attention to the performance history of the company you’re looking to invest in.

Make sure you’re choosing the one with the lowest risks and guaranteed returns.

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