Thoughts On Buying Another Property In This Environment
We recently put a contract on a property to serve as an expansion to our rental properties. We weren't looking to expand, but an opportunity popped up that was compelling enough for us to make an offer.
As we have moved through the buying process and with the recent market turmoil, my wife and I have paused a couple times over the uncertainty of whether we were making a sound investment decision.
After all, the housing market seems to be in a bit of a free fall and will still likely take some time to stabilize. The stock market is wildly bouncing around due to the current uncertainty of the economic outlook. Is now the right time to be making another real estate investment?
Truth is we have no idea. All we know is that this opportunity is allowing us to purchase this property at a ~2002 price for the neighborhood. I had always said, after I bought my 1st home, if prices ever got to that level again we should buy another property. At this price I'm confident we will be able to rent it out with a positive cash flow in the long term.
Also I know we are not in a position to sit idly and wait to be financially free. We have made a great deal of progress over the last 5 years (see our net worth growth), but that progress is because we have taken advantage of opportunities that came up. This property is an opportunity for us to add another stream of income which should help us over time get to a point where we could consider us financially free.
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