For starters…I’d try to buy a place I can live in that is a little dated that I can upgrade along the way for some sweat equity in addition to your downpayment and your rent never getting jacked on your again.
If you decide to go the investment property route I’d spend as little as possible so you have less skin in the game and get a feel for being a landlord (or working with a management company) without as much risk man. Why go so huge on the first one? Some might mention leverage and cheap money right now, but it works both ways and nobody is certain what the market will do.
I agree on rents in a recession based on personal logic, but I honestly wish I could find more data on that. I’ve always wanted to find a graph/chart that goes back 30 years showing rents. I’ve searched quite a bit and the closest thing I’ve found is this (Rich actually found it and shared it with me a while back…thanks Rich!).
The chart is quite compelling since it shows the past 3 recessions (shaded in), but I’ve always wanted to find something that says what North County SD has done in my lifetime since that is where I live and like to invest because I like managing my own properties. My guess is that it’s even more “up and to the right” as they say, but I’ve been unsuccessful in finding solid data.
Lastly, I’d say meet up with someone who has done what you are looking to do and can share real insight. Is your friend recommending you to do something with your money that they have not even done? I’d find someone that has done it to share the good and the bad to help you with your decision. Feel free to send me a message with any specific questions I might be able to help with too.
