We are living in an unprecedented time. Businesses are shutting down left and right. Entire industries are rethinking their business models. Service industry employees are having to reinvent themselves to remain employable. Are schools opening or not? Vacations get cancelled, rescheduled, or reconsidered daily. Every day is a new surprise, and it is impossible to plan anything without the likeliness of having to reassess and replan depending on how quickly society shifts.
There is one constant that will never change: people need a place to live! People will always need a place to live, and it is difficult for any crisis, pandemic, recession, apocalypse, etc., to disrupt that one truth. If you put yourself in a position where you can offer someone a decent place to live in exchange for money, you will always be on a healthy financial path.
Mortgage Rates are at All Time Lows
The current economic climate is prime for real estate investment. With rates at all time lows, leverage is extremely cheap, which only helps maximize your cash flow. The lower your mortgage payment, the more rent money you will put in your pocket when all is said and done. Now is the time to take advantage of historically low rates, and lock in a cheap mortgage.
But What About the Eviction Moratorium?
There is also a huge misconception regarding the current eviction moratorium that has resulted from the COVID-19 pandemic. Yes, there are no evictions allowed currently. Despite what the media tells us, that is not as catastrophic as it seems. Any half decent property manager will know how to place the best possible tenant in your property. With proper tenant screening, you can ensure that you rent to individuals with steady employment from industries that we know are currently booming. Restaurants may be hurting, but the tech industry is on fire right now. Anyone working in the medical industry will be steadily employed for the foreseeable future. Those are just a handful of industries that have seen a major boom in the past few months. These are the tenants we should be targeting. With healthy tenants, you will never need to deal with evictions.
The wealthiest people in history have been real estate investors in one way or another. If you take just one small step into the world of real estate, you can improve your financial position exponentially, and get closer to living a life of financial freedom.