There is never a bad time to invest in real estate if you do your due diligence and find investments that make sense. However, periods of economic uncertainty can add additional risk to buying an investment property that many are not equipped to handle. Steven Taylor Taylor Equities is a landlord and real estate professional with years of experience in the Southern California housing market. Here is some advice for landlords who are wondering whether or not now is a smart time to buy.

There is never an inherently bad time to buy an investment property, but you should always be careful, especially in a recession. There is no telling if or when the local market will rebound and how long it will take for your investment to become profitable. Especially when it comes to a recession as volatile as the current circumstance the US is facing concerning COVID-19.

The demand for homes across the US declined dramatically in the spring of 2020 in the wake of the shutdowns across the country and yet bounced back to near normal levels in the summer. There is no telling whether a second wave of the virus will impact the housing market and how long that impact will last. Therefore, if you are planning on buying an investment property, it’s wise to plan for uncertainty. This means having cash reserves or liquid assets ready to neutralize any losses in the short-term cause by news related to the virus.

But, despite the uncertainty, US housing markets have not taken the major hit many economists we’re predicting. Housing prices are still appreciating, albeit at a slower pace than in the years prior. This means that the future is far from bleak for real estate in the US, however, investors should still expect some turbulence.

There are likely many motivated sellers out there who are ready to sell their homes and retire or move from a dense urban area to the suburbs. This presents a variety of opportunities for investors to snag properties at a discounted price in the hopes that they appreciate rapidly once the virus is more substantially contained.

Novice investors may be wise to wait until the dust settles to start investing unless you don’t mind the risk. But seasoned investors may find this to be the perfect time to scoop up an under-market property. It all depends on how comfortable you are with risk and whether the right deal comes your way.

Steven Taylor Taylor Equities is a seasoned real estate professional who has been in this business for a long time. While real estate is always a solid investment no matter what the market conditions, those looking to buy an investment property at the current moment proceed with caution and consider the potential downside.