Start Real Estate Investing Regardless of the Housing Market
Is Real Estate Investing in the current market still a good idea? Do you feel like you have missed your chance to get in the real estate investing game and start building wealth? Nope! You can still start and here is why.
Real Estate Investing 2021/2022 Markets
In 2021 properties were flying off the shelves, due to the low interest rates. This allowed for more investors to get into the real estate investing game. However, a year later, the interest rates shot up. This left potential investors wondering if they missed the opportunity and if they should still invest.
Well, I am here to say, YES! As someone who has purchased in BOTH markets, I say invest!
Real Estate Investing in Both Markets
In 2021, I purchased my first duplex and in 2022 I purchased a second. My first, was with 3.75% and the second was at 5.99%. Regardless, I am making great cashflow in both. Here is the comparison:
| Duplex 1 (2021) | Duplex 2 (2022) | |
|---|---|---|
| Purchase Price | $113,300 | $105,000 |
| Interest | 3.75% | 5.99% |
| Mortgage | $587 | $670 |
| Net Cashflow | $506 | $426 |
The Pros & Cons of both Markets
My cashflow for both markets are pretty similar. However, how was the buying experience? How was negotiating with the seller?
Well, in 2021, it was a seller’s market, which made it more difficult to nitpick repairs and purchase price. Due to the influx of investors, it did make scoring deals a bit tough. Yet, I was still able to purchase a rental property and negotiate under appraisal.
In contrast, my 2022 duplex, the seller was more eager to negotiate. It was easier to find deals, as newer investors did not want to deal with higher interest rates. I was able to find a good rental property for way below asking price and I still was below the appraised value (hello, equity!).
But What About the “BUBBLE?”
As you may have started to hear, there is a huge market crash coming! You may hear about how house prices are going to crash and everyone will lose their homes. Eeek! It all sounds very scary but the reality is:
- Home prices are correcting themselves from the overly inflated prices from 2020 & 2021
- Real estate investing is meant to be a long-term game, so look at the future’s benefits vs the now
- The market has become more balanced vs a seller’s market. Which we all saw how that went!
- Interest rates are still historically low
Should You Still Invest In Real Estate?
The short answer is Yes. Regardless of the fear-mongering, as a real estate investors, we look toward the future. The short-term changes should be taken into consideration, somewhat, but the main factor should be future gains.
Similarly, both types of markets have their advantages and disadvantages, that you can leverage to still score great deals.
Want to Get Started in Real Estate Investing? Sign up for my Real Estate Investing for Beginners Course!
Check out my Personal Finance Books Written by Women reading list!