Spring homebuying season is in full swing. At the same time, we are experiencing more than our fair share of economic turmoil, including tariff wars, inflation fears, and stock market volatility. While real estate is somewhat insulated from these issues, it’s undeniable that it will be impacted. So even in our inflation-resistant, reliable real estate world…should we buy right now?

Don’t rely on emotion or sentiment to make your decision for you. Instead, consider these key determinants!

9 Things That Help Investors Know When to Buy

Personal & Controllable Determinants

#1 - Cash Flow Analysis

An investor’s first consideration should be financial. You should clearly understand a property’s potential before purchasing it. Will the property generate sufficient cash flow after accounting for mortgage payments and expenses while maintaining cash reserves? Use conservative rent and expense assumptions. Consider the costs of dealing with regular expenses, such as property management and maintenance, while also anticipating the impact of the unexpected, including sudden repairs and vacancies.

💡 If a deal cash flows today under realistic assumptions, it's a good deal, regardless of the market.

#2 - Capital Availability

Do you have enough capital for the down payment, reserves, and closing costs? Can you handle unexpected expenses or vacancies? Real estate investors are meant to scale their portfolios, but we must do so wisely and sustainably. Avoid overleveraging or overextending your financial position.

💡 Never stretch thin — hold 3–6 months of property expenses in reserves.

#3 - Investment Time Horizon

Today’s market conditions don’t define the future. Buy-and-hold investors hold the cards here! Can you commit to keeping the property for 5–10 years or longer? Long-term holding helps ride out downturns while maximizing benefits from appreciation and amortization.

💡 Holding long-term significantly reduces timing risk.

#4 - Due Diligence & Market Knowledge

While many passive investors choose to invest in markets beyond their local area, they always do their due diligence. No market is alike. Are you investing in a market you understand? What economic drivers are at play? What are rental trends? How’s the competition? Have you vetted property managers, local laws, and neighborhood trends? If you’re moving into a new market, ensure you know it like the back of your hand.

💡 Knowledge > Timing. A mediocre property in a great area often outperforms a great property in a weak one.

#5 - Deal Flow & Team Strength

Consider where you’ll source your deals. Do you have connections to reliable turnkey partners? Is your team prepared to support your scaling efforts? Maintain open communication with your property management team, legal advisors, and financial advisors. They’ll help you settle on the best approach.

💡 It’s not just what you buy, but how you manage it.

Economic & Market-Level Determinants

(These reflect the broader context. You don’t control them, but you should understand them!)

#6 - Interest Rates

Interest rates have been a thorn in investors’ sides for a few years. You either hold tight to those remaining 3% rates or mourn their loss. However, interest rates have been decreasing. So, at the very least, scaling should be considered.

Higher interest rates impact affordability and cash flow projections, but they also cool competition and give you more negotiating power.

💡 If a deal cash flows even at high rates, it’s likely a strong asset.

#7 - Inflation & Rent Growth

High inflation often leads to higher rents over time, which benefits property owners. But it can also hurt affordability and increase costs. There’s always a push and pull. Still, rental properties often see rent growth and appreciation that offsets (and usually outpaces) inflation.

💡 Real estate can hedge inflation — if your rents keep pace with rising costs.

#8 - Housing Supply vs. Demand

Look for markets with population growth, job growth, and solid (but tighter) supply. Avoid oversupplied markets or areas with a declining population. Pay attention to migration patterns and comparative market affordability!

💡 Modest supply + growing demand = rent and price stability.

#9 - Recession Risk / Economic Uncertainty

Economic uncertainty may prompt investors to think twice about expanding their portfolios. However, remember that there are always opportunities for savvy investors willing to adjust their strategies to adapt to changing market conditions. A recession can create buying opportunities that you wouldn’t see otherwise.

💡 Be extra cautious with income assumptions in downturns, but look for opportunities regardless.

🧠 Putting It All Together: A Checklist

Bottom Line? Time the Deal, Not the Market

For passive investors, the goal isn’t to time the market — it’s to buy smart deals in resilient locations that perform regardless of the stage of the market cycle. Buy-and-hold investors are best positioned to benefit from investing, regardless of the “when.”

Want to learn more about investing in resilient real estate investment markets? You’re in luck. Your REI Nation advisor is waiting for your call.