I have $60k from CDs maturing next month. I planned to buy a rental property, but with high prices and rates, I might put the money into another CD. This would be my first rental property. There are some 2 bed, 1 bath houses nearby for about $225k. If I could make 8% cash flow after expenses, should I go for it or play it safe and wait for the real estate market to improve? What would you do if this were your first property?
Yeah, I hear you. It’s a tough call for sure. Real estate can be a great long-term investment, but the market can be fickle.
It’s advisable to keep the majority, if not all, of your funds in cash or similar liquid assets. Money earmarked for use within a three-year timeframe shouldn’t be exposed to risk.