Do you have an emergency fund? A reserve fund is for emergencies only. This is in case your tenants do not pay their rent or maybe a water heater broke in all units. If you are using all the money you have to buy property, cancel the contract. This is not a smart gesture at the time. This will cause a set back on your finances.
Colleges have closed their doors and have moved to online courses. If you were planning on college tenants to occupy your home, you may want to cancel the contract. Most college students will either go back to stay with their parents or buy an affordable apartment. See what your local market looked like about 52 weeks ago. If it was flourishing, continue with your contract. If not, don’t. Weigh your options. Look at the deal and look at your job. Research the local market and your potential tenants. Most importantly look at your reserves. After careful consideration, if you’re still not sure, then it’s time to cancel the contract.
Real Estate options can be an amazing tool to utilize in your investment strategies. If you are a creative investor and need further legal assistance, contact Martin Law Group. We help creative real estate investors close real estate deals. We are offer a free real estate consultation for the month of May.