I had an interesting conversation with a real estate investor who is considering the purchase of a rental property (or properties) in the City of Harrisonburg, and they asked whether Harrisonburg was a good market in which to buy such a property -- or, put differently, is now a good time to buy a rental property in Harrisonburg.

After some discussion, and further processing since then, I think I'm sticking with my original "yes and no" answer....

Yes -- it is a great time to buy a rental property in Harrisonburg:

• We have a strong and growing economy with low unemployment, so prospective tenants are likely to be able to keep jobs and keep paying the rent.
   
  
• Well maintained rental properties seem to be in short supply and are renting quickly.
   
  
• We are seeing slow and steady growth in home values which doesn't shown signs of stopping -- meaning your rental property is likely to continue to increase in value.
   
• If property values keep increasing over the next few years, as most expect that they will, there is not some "better time" than now that will be coming up in the near future.
  

No -- it is not a great time to buy a rental property in Harrisonburg:

• Inventory levels are low, resulting in a seller's market -- meaning you won't be buying a rental property at a discount -- and you may be competing with quite a few intended owner occupants when you are making an offer.
   
• Home values are not currently depressed with a likely quick increase in those values in the next few years.  Thus, it is very difficult to buy "below market" and have any "instant equity" in the immediate or near-term future.

There are a variety of other factors that could be put on one of the lists above -- but at the end of the day, it is not a clear or obvious decision to buy or not to buy.  Some of the factors that should likely weigh in as you think about this decision are:

• How long do you plan to own the rental property?
   
• What are your investment goals?  (cash flow now vs. value later for example)
   
• Are you willing to invest in another market if you could find one where the opportunities seemed to be better than in Harrisonburg?

Below, then, also are a variety of resources that might be helpful to you as you think about this decision and as you consider specific rental properties....

• HarrisonburgForeclosures.com (upcoming foreclosure sales)
   
  
• HarrisonburgInvestmentProperties.com (overview of categories of investment properties)
   
  
• HarrisonburgInvestmentProperties.com/tools/ (Excel files of analysis tools)
   
• HarrisonburgTownhouses.com (overview of townhouse communities)
   
• NewListingsInHarrisonburg.com (review or sign up for email alerts for new listings)
   
• JustSoldInHarrisonburg.com (review, search or sign up for email alerts for recent sales)
   
  
• HarrisonburgAssessments.com (find City/County assessment and tax record data)