Do you think it's a good idea to buy residential rental property right now?
On the one hand, interest rates are low, making it very attractive to get a mortgage.
On the other hand, my tenants may lose their jobs because of Covid, and will be unable to make their monthly payments.
Not only that, but a possible Democrat administration in January may allow my tenants to live in my building(s) rent-free until the pandemic ends, which may not be for a while. Meanwhile, I'll still have to pay my property taxes and mortgage payments.
FYI: I'm looking to buy a multi family rental property in Massachusetts (non-FHA loan).
- RobertLv 71 month agoFavorite Answer
If you can get reasonably priced property in the suburbs, a lot of people are looking to leave the cities so there is a decent chance of success. If the Democraps take over there will be more questions than answers and with current attitudes you will probably have some really bad issues to deal with. On the other hand if Trump stays and you have decent tenants you should do ok in the long run. The current owners, if they are smart, would have done a background check of the tenants. That should give you an indication of their credit history and tendency to take dept seriously. You can make a reasonable guess of their worthiness with that information. Nothing is certain in this day and age, but the big factor is the election. If Biden is in everybody loses. If Trump wins, jobs will continue to return and suburban investments should do well as people continue to leave the more liberally run cities.
- ErikLv 71 month ago
I don't have any money
- ALv 71 month ago
when looking at properties you can ask for the rental and payment history, chose one that the tennants are paying on time
- 1 month ago
not good time for rentals
- How do you think about the answers? You can sign in to vote the answer.
- A HunchLv 71 month ago
Since 2015, I think that real estate has been a poor investment.
- you can make more money in other investments (stock)
- investing is A LOT easier than being a landlord.