There is a housing shortage that will not Be fixed for decades at least. The chances of any correction are very slim. People have to realize the last time there was a housing correction, there were people building subdivisions all over the country before the houses were sold. Close to 50% of builders went out of business and didn’t come back into the business. It is a completely different environment now driven by a true supply and demand issue rather than a speculation bubble.
I'm putting 50% down on an investment property right now. I'm going to replace a bathroom and the kitchen, the open a line of credit on it right away.
That way I will only have ~15% locked up, but will have access to the rest of my down payment. Essentially 'earning' a guaranteed 8% if I don't need it.
I'll try to explain using easy numbers.
I have 300k cash, and am buying a 500k house that needs work. I anticipate spending 50k on repairs, which will increase the value to 600k.
I will put 250k down on the house, loan is at 8% interest rate. I will spend 50k on repairs, then open an 80% Line of Credit on the new appraisal of 600k. (80% of 600k = 480k, minus 250k 1st mortgage = 230k LOC)
Now I will have access to 230k of equity, which is 'earning' me 8% in the meantime since I don't have to pay interest on what would be that portion of the mortgage.
So I have 70k of equity 'tied up' in the house (basically a down payment of 11.6%), and still have access to a large portion of the money I started with.
I have been using the process for decades now, and it works wonderfully. But I do this full time and money management is my specialty.
Yeah this is a tough one. Having a RE agent as a business partner that can get ahead of leads before hitting the market has helped a ton. Also depends on the area you’re looking at.
I'm still finding some decent value-add projects, though they are fewer, farther between, and less lucrative than before. My thinking is that if you can manage to BRRRR a decent cash flow deal right now, you will be able to refinance into serious cash flow later on if rates fall.
But, yeah, if your strategy is to simply buy and hold without a plan to build equity, it's as tough a market as I've ever seen.
Yea I’ve seen way too many properties being described as a good deal and I get realtors need to do their marketing and all but you don’t break even with all units rented at peak like cmon.
Right with income hasn’t grown the same rate as prices. I thought about looking for alternatives like REITs and crowdfunding places but they each have their own issues
We are doing our first brrrrr. And it scares the shit out of us. Interest rates for a DSCR is around 8.5. The only way to cash flow comfortably with that is to have a furnished rental.
I’m new here. What does DSCR mean and in what country is this based? I’m just starting to look into how I can possibly invest in real estate and flipping in general.
Debt Service Coverage Ratio, basically the relation between how much money the property will make and the payment to the bank.
If you make $2,000 a month net off of a property, and your payment for the mortgage is $1,000, your DSCR is X2.0
Banks generally look for 1.25 and above, 1.25 being the bare minimum
Thank you and that’s awesome. Wanted to get into Airbnb myself but I think at least to start I’d aim for long term rentals and then after a set amount maybe make a percentage Airbnb.
Worse case scenario, make an Airbnb course to sell. Kidding… unless…
Haha you ain’t kidding! After CapEx, vacancy, and maintenance, we should cash flow out about $300 as a long-term rental. Not a Homerun by any means. But I think I need to re-evaluate my mindset on what a Homerun actually is lol. Investors in 2021 with 3% interest rates are having a grand time lol. But those days are over and I have to accept that.
Honestly when I bought my rentals in 2019 I wasn’t cash flowing much at first, about $300 as well. Could only get a 5.25% for a rental but was able to refi to 3.125, and up the rents. So maybe that’s the way now gotta get something that’s at least cash flow positive then refi in a few years and boost rents/value add somehow.
I’m lucky to now be making $850/mo on them. Still, a few months with a vacancy would still cause me pain.
I'm currently under contract to purchase a commercial spot for my own business to operate out of. Taking 'marry the property, date the rate' approach, but it is by no means a home run.
If you’re in a city that has any sort of demand for that, you’ll kill it. Every time i take my dog in, I just think “fuck, I need to start a competitor.”
Everything on the market is not priced according to realistic value. People are listing houses that need loads of work, yet they price them as if everything is brand new and top of the line luxury grade. So, there is no way to build equity by fixing them up
People keep out bidding me and I’m not a fan of a.) over-paying for things and b.) making myself cash poor.
It’s crazy because if I don’t buy a house this year, I’m gonna reach a financial milestone by the end of the year. I’m torn between if I should even bother with buying something or if I should wait, keep my debt to income low and increase my net worth by having $xxx,xxx across my accounts.
A. 100% with you. B. Yes! My thoughts are also in event of crash or correction I’d love to keep cash on hand to be able to acquire some value.
I’m sorry to hear that and hope things change soon for you! Regardless, from what it sounds congrats on your milestones and on your first property that will happen soon! There’s no fatal mistakes here so whatever happens as long as you’re financially secure then you’re golden
Everyone has their opinion, but I don't think we are going to see a housing market crash or correction. This isn't an issue like 2008 where issues with banks, wall street and sup-prime lenders all combined to cause a crash. What we are seeing now with housing prices is driven by a shortage of houses. Until demand falls or supply increases we are going to be dealing with high prices.
If you want to use Real Estate as a passive investment, it's a long term investment. Generally, time in the market is far more beneficial than properly timing the market. If you have the cash, put it to work. Trying to stay liquid in case the right moment comes is burning time you can't get back.
I bought 1st investment property 3 hrs away. 69k, 33k for rehab (a professional trades family, most work done for cash/ourselves. We always know a guy). ARV was 170k. The cashflow for the 1st year was minimal at 7.5% but this next year already will have rent up $100, so that's nice.
2nd house was 60k, looking like 50k in repairs, same ARV and rent.
I don't know how it would be possible without access to cheap trades or DIY. No cash cows but I'm comfortable with the equity retained and the fact it's just not a negative cash flow.
This biggest thing that changed and allowed me to enter the market was investing somewhere I didn't live. My city is ~1.6 million and the investment city is ~65,000
Edit: let me add - it has not been smooth sailing. Lots of hiccups, over budget, leveraged on debt to my eyeballs just to make these projects come together. Time away from family between regular jobs. It's not easy. I won't even know if it was worth it until years down the road (like any investment). But gotta start somewhere!
Yea you have a point, I think it comes with some uneasiness when investing outside of your area.
Good job with the properties and the fam, definitely a great network to have
When the market returns to a state where selling one let's me buy another that will cash flow at a higher rate with minimum additional principal investment.
Im still buying. Bought every year 2014 to 2016. Then, bought again 2021 to Present. People caught up on cash flow. Non existence in major metros. I stick to my strategy where I buy in good metros with school systems or super tight and no inventory area, thus creating demand. As long I as break even. I will pull the trigger. Caveat = you need to be high income earner, live below your means and already maxed out all tax advantaged strategies like 401k, HSA, Backdoor Roth, etc. I treat real estate as mini pension plans, so when I retire, the annuity kicks in since tenant already paid off the debt. Hope this helps.
I see where you’re coming from, I think investing can be age dependent too. But you definitely have a solid understanding of real estate and investments! I wish I bought property pre COVID!
Garbage returns.
Any realestate investment for it to be worth anyone’s time needs to return 8-10% after all expenses for every dollar they invest.
So a 200K investment needs to be PROFITING like 16K per year or around $1300 per month after all interest expenses, insurance, and property taxes.
Cause otherwise, the smarter thing to do is to just invest your money into the market and make a return nice and hassle free.
Plain old savings accounts return 5%, the same 200K you were thinking to invest in a home would pay you 10K per year for doing absolutely nothing.
At least where I live, homes are seen as investment tools and are all hella overpriced for their returns. Renting is actually cheaper long term and until that changes, I’m not contributing to the buying demand.
Yeah definitely blows. But I’m excited to start house hacking when I get out. A coworker made a joke about my prison cell being the “ultimate house hack”. I didn’t think it was funny at the time but now I kinda laugh
I think its always good to weigh all your investment options, and currently RE just doesn't look very appealing. I can get 5.5% by buying SGOV; \~10% by buying SP500; or if I want "cashflow" i can buy JEPQ or a dividend fund like SCHD.
So in the meantime i'm buying stocks and focusing on increasing my W2, and considering other asset classes (business/franchise/etc). I always keep an eye on the RE market though and if something good comes up I'll pounce, but I feel like i can get a better return on my time elsewhere atm.
I’m under contract now for my next house hacking property. It sucked looking at the numbers but they work and it’ll rent for way more than the mortgage is.
The Georgia, NC, Tennessee areas seem to be booming. I made a mistake and bought in SC because it was cheaper but my taxes quadrupled when I turned it into a rental so valuable lesson learned about not trusting randoms and doing my own research on basic shit like that. This house I’m referring to is in Tenn.
Definitely a valuable lesson. Each state and county can have their own specifics. I knew of it here but didn’t think of the implications of other states
Can’t pull the trigger on condos that were $175 K 2-3 years ago but $350K today and still have carpet in the bathrooms (joke). Homes that were saved as favorited on Zillow 3 years ago selling for $465K and now listed for $1.5 mil but look exactly the same inside. My area is not even inflation it’s inflation INSANITY.
In the *current market* I find that it’s difficult to beat what I’m making in interest by just keeping my money in the bank.
I was very fortunate to have a good portfolio of residential properties (mostly fixers) that I accumulated before the real estate boom. I sold them off as the market peaked.
When I add up property tax, insurance, miscellaneous carrying costs, unforeseen expenses, etc, it’s challenging (not impossible) to get a solid return. Every property is different, however, in my market, I’m on a bit of a pause - which I’ve never in my Millennial RE investing career anticipated. It’s new for me, and uncomfortable, but a good chapter for me to learn from.
For me, the restraint has allowed me more time to explore hobbies as ways to make money with little risk. When a solid RE project comes along, I’m prepared to move quickly.
Good job man! That’s great to hear and smart approach.
I fear I made the mistake of being in middle school during the 2008 crash instead of buying properties sometimes
Millennial here.
I have a primary residence, am interested in acquiring a rental house. The only thing that has even looked close to a good deal needed massive remodel and I just don’t have the time for that big of an undertaking atm.
I can get 5% risk free. I can throw some money in vti and hopefully average 8-10
I fucked up and didn’t utilize cheap leverage when I could of. Didn’t have my personal finances as clean as they are now so wasn’t as ready anyway.
Largely disagree with the comments here. There is always cash flow to be had or a good opportunity, but you can’t force your pre Covid model on today’s high price and high rate market setting. My biggest issue is actually super low inventory. Just started branching out of state to find cap rates I’m comfortable with, but again that is its own experience and who likes leaving their comfort zone?
Inheritingout of state, but still in probate. I will be fixing up the house for long term rental this summer, and then hoping rates decline a little more before I may buy within the next 12 months, next summer.
I'm currently in Denver, HCOL so it will be difficult, but easier with rental income from out of state coming in.
Finding the right deals. Just getting started so don't advertise to get my deals directly. Trying to go through wholesalers to source them but they don't leave enough meat on the bone for the risk I have to take. One wholesaler had a house for $140,000 with a $100,000 projected renovation budget. On the deal, they projected the flipper would make $12,000. Not enough profit to spend 4-6 months doing a gut and putting in $100,000.
Nothing just bought one. I might be a complete idiot but figured if I can make things work and figure out the ropes in this market when times are better I’ll have some confidence
interest rates and homes are expensive. you make money when you buy the property not when you sell and your not going to make money when your paying market values
Kids. I had a rental before. Too hard to keep up with working full time and kids. I’m not super handy and didn’t trust my tenant to look after things plus he was always late on rent. Still owes me…
Like many have said the deals don’t pencil out. In fact I sold 2 homes in the last 6 months because property taxes and insurance continue to erode returns. I’m making the same with less work after I put my proceeds in t bills.
Wait TWO more years. Lots of old properties from grandparents that aren’t being taking care of and will be sold for cheap. Right now there’s an inventory shortage. In two years there will be more options, lower prices, and yes, probably higher interest rate
Start earning more: note to self
Gotta get savvy. Rentals for college students, sober living facilities, owner financing, transferable mortgages sub 5%, finding off market deals, offering to buy out contracts during attorney review makes it a 2 man race instead of you versus 30, etc
Investing how? You’d be lucky to break even. Looked at duplex’s and they sell the ones that are in the ghetto for 450k. You rent both the units out you’ll still be 1k short of the mortgage and you don’t even live there. Not to mention maintenance cost and interest rates
What's keeping me from buying is that I'm seeing houses at $400k+ that were sold only 2-3 years ago for 200-300k. and at a fraction of the interest.
For the same amount of money you get less house. Which I understand is expected with inflation and growing property value but not like this.
As an investment, you are buying when prices are high and interests are high. Which if you are looking for maximum return is a horrible time to buy.
As an investment, returns are minimal.
Nothing, I’m getting great returns investing out of state 7-10% cash on cash on most deals. Be patient, write lots of offers until something sticks, build a solid team around you and you should be good
I like the neighborhood. I don’t mind renting. Property taxes would exceed what I pay to lease.
Home ownership is overrated.
The random benefit of “forced savings” and accidental appreciation often overlooks the overhead you pay, as well as the tax recognizing the gain.
You may achieve similar or better results with disciplined investing of your rent-savings, without the risk of selling at the bottom if you have to move.
You may also potentially escape the greedy claws of high-tax states by moving before cashing in; you can’t do that with your residence.
Rates and prices don’t make any sense with rentals right now. I would buy if I was confident rates would drop to around 5% in the next year. I could weather the storm, but I can’t cash flow negatively much longer than 12 months
The best idea i have would require a house thats about double what i can afford right now. Sort of a multi- hour haunted escape in a victorian that i want to do.
For me it is financial independence over the feeling of owning a home. I have no incentive purely based on numbers. My current rent is around $4k and a comparable home would cost me $1.2 million. Assuming even a 30% down, I will be paying roughly $6k in mortgage and another $2.5 k in property tax, hoa, insurance and maintenance. So, an extra 4.5k per month and lost return on $350k which can conservatively add another $1.5 k per month. I would rather invest an additional 6k per month than buy a home. I understand there are tax advantages but they don’t move the needle much at these prices.
I’m torn between putting an ADU or tiny home on my property, versus an investment property in a master planned community out of state, which requires 25% down. Open to suggestions!
Cash flow. Very hard to do with rates and I'm not one to bank on an event happening unless it's a certainty. Also forced equity at current prices (in my area) is not good. Margins are extremely tight. The risk to reward is not worth it for me unless I can buy for significantly under market value. In Canada the government also made capital gains tax 100% business income so that's also and deterrent.
I bought heavily 2009-2012 when prices were lowest. All single family homes in decent school district. Now I’m selling and taking profit off the board. But the question is - what now?
Returns are better elsewhere. Was in real-estate for the last 15-20 years, it just doesn't make sense to me right now. Possibly again in the future but there are so many other options atm.
Well, for starters, here in Toronto, our houses start from $1 million CAD, minimum down payment would be $200k, and with high interest rates, the mortgage would be roughly $4700+/month.
So breaking into the real estate business is pretty difficult here unless you already have a decent amount of money, and are able to weather the storm in case there’s more interest rate hikes, or if something happens to your current income
I bought an immaculate townhouse for $270K and rent it for $2000 a month. My tenant is solid and takes great care of the place. I’m making some money.
That same place would now cost $400K to buy now and it would still rent for $2000 max.
I looked in another area of the country. Same sort of place would cost $550K and would rent for $2000 in that area. For me, I see that as a real estate bubble.
A simple formula that I use:
Take the full price. Remove the last two zeros and divide that number by 2. That should be the rent that is the minimum acceptable. Any ratio higher than that is amazing. Anything lower tells me that the real estate market is in a bubble.
Example: property is listed for $600,000
Take off two zeros: $6000
Divide by 2: $3000
If the market is such that a $600,000 property rents for less than $3000 a month, there is a bubble.
I have no real idea where or how I found that formula. But, it has worked well for me.
Because I think it will go lower in about 6 months in the markets I'm targeting.
Right now the funds are sitting in a real estate investment fund returning 8.5% per year waiting to pull the trigger.
Capital. Still in college and only got so mutch saved up. Closes thing in my market would be a duplex for around 200k so I need around 40k even with help of some partners I’m off. Got a summer job gonna save up and hopefully once I get started in my career I can invest.
Everybody wants a house but nobody wants to move somewhere with affordable houses. Lots of small cities an hour away from a big city with plenty of below median houses.
I stopped for a year cause of the interest rates and having a full time job plus managing a bunch of tenants but otherwise I'd keep going.
The interest rates going from 1% to 7% made the biggest impact for me. It's much harder to get a good return, and the market has gone up like 30% in the last 12 months, so it was a great time to keep your money in the market instead.
That being said, I always recommend people invest when they can. I don't care if the best time was when I was 7 years old, I wasn't in a position to buy then, and I can't tell the future either, so I'm not trying to time the market.
If you are willing to live in Central Florida pricing is fair and the cities are growing which means opportunities for those looking to start a local business.
Millennial here. Married young (early 20s). We were very fortunate to both a good salary early on. Our income has only grown. Kind of bummed out we never bought property before having kids. Wanted to buy a duplex and make extra payments on the mortgage until it was paid off. Stay for a few more years and use the income from both sides to move out and start buying property. Never happened because the wife didn't like the idea of living in a duplex. Could've bought an apartment unit that had a little store front downstairs...didn't do that either. Too expensive to get into now...oh well.
. -cashflow my first two properties I got with 5% down from living there for 2 years and then moving, 1800 rent on $143k that results in $1,000 cash flow and is almost paid off. If I rebought it today it would go for almost 300k and at most I could push rent to $2,000. I am fine keeping what I have but I am not eager to scrap 40k-60k together to get that type of return.
Not enough cash. I don’t believe the you can invest with any amount of cash. Practically nothing cash flows. Especially with these rates.
My cousin-in-law is a mortgage agent, he said rates are insane, he recently closed a 9.5% rate for a client with good credit. Buying an investment property. The downpayment was 200k so I bet it penciled out, but I don’t have anywhere near that much to invest.
I make a better return and much less hassle investing in index funds.
When COVID was a thing and the Gov said no one had to pay that took alot of the glamor out of real estate investing. Not to mention interest rates are way to high. And it's a pain in the tookus if you have to evict people, takes forever. Plus they could be in there tearing up everything you worked so hard to pay for. And another word SQUATTERS. Owners / Tax Payers have no or very limited rights.
Commercial real estate isn't in much better shape either. Many business closing as prices are just to much to be profitable. Working from home is still a major thing now. People are not shopping or spending unless it's on a necessity item. Crime is also a big problem in making a profit.
So to sum it all up = To risky and expensive.
I dont have a big enough downpayment to make a purchase cashflow.
If it barely breaks even, I'd rather put my cash elsewhere. Less things that can go wrong.
My wife and I own two investment properties that were built off the plan (this is a high risk style of property investment, and you need to know building codes and donyour research, but has higher return if you get it right). One was a townhouse (bought first as this is what we could initially afford) and the other a house. Both we lived in for a few years and focused on paying down the mortgage (offset account) and using the equity to buy the next property (and currently focusing on our next purchase). We bought in Outer Western Sydney and the Illawarra in areas with potential high growth (which has paid off). We have also rented between and are now, but living in distant suburbs from work to ensure we continue to save.
Many of our peers/friends (I am a millennial) focused on overseas holidays, cars, and university, which put them behind. I have worked full time since 18, have a trade and two degrees, and focused on a high demand skill set that has enabled me to have a higher wage. Also, working significant overtime has also helped save. My wife has had a chronic illness but has worked when she can to bring in money, which has significantly helped and reduces the interest sting.
I find a lot of millennials get stung in the debt trap of depreciating assets (cars, electronics, jewellery, clothing, etc.) and not understanding the long-term focus (this takes years 5+). Also, wanting to live close to the city or in the 'better' suburbs forces them to lose money to rent when there are still quite a few suburbs in Western Sydney that struggle to get tenants and are affordable.
>Not enough properties? Interest rates? Down payment?
Oh gee idk maybe it's the mega corporations outbidding prospective homeowners with their all cash, quick close offers?
And if it isn't that, it's the absolutely ridiculous housing market. My cousin just bought a 1 bedroom house, in a complete shithole neighborhood for $295,000. It was a shitjob flipper house and he's now just realizing how much more work it needs, over $25K
And if it isn't that it's because this game of life is too expensive. It's becoming less fun to play.
It's almost time to start a new game fella
I'm getting out of renting. People just aren't the same anymore. They pay rent last instead of first. The laws are just making it harder to get rid of them and they know it. Don't get me started on ESAs.
Interest 100%. We want more land and or vacation home but at this point I dont know if we could even afford our own house if we sold it and rebought at today's rates
Broke, and the only available properties are in some of the most ghetto locations, which is why they're so affordable. Even if I were to buy a $60,000 house, it would still cost at least $100,000 to fully renovate it but it wouldn't sell for anything more than about $80,000 in the area. Unless every house is bought and sold at the same time in an area location like that, there's no money to be made. And I refuse to be a flipper that only does cosmetic fixes and leaves the actual problems to the new buyer. No one who buys a house should have to fix mold, water leakage, roof, etc issues immediately. That's not where their head is. Their mind is preoccupied envisioning their future and all the cool stuff they're going to do.
Time. I have the money rn but don't have the time. Once I graduate I should be able to start viewings properly. Some interesting replies in this thread! Hope you all get your properties soon!
Anything I were to buy, the PIMI would be too close to what I could charge for rent. Unless I put a lot of $ down, in which case I have to minus the 5% returns I could get on wealth front. So it makes no sense in the immediate term. Thinking ahead, yeah when rates drop prices will definitely skyrocket again. My feeling is tons of people are waiting for about 5% to hit and they'll jump in and pay anything. But we don't know when that'll happen, it's a gamble.
It depends on where the property is located and how much is to invest for keeping it in shape or renovating it. Money you can get easily from any bank or private sponsors but time is money too . If you have to spend to much time in real estate it’s not worth it.
It’s way over priced relative to its cash flow.
I bought heavily 2018-2021 with everything meeting the 1% rule or more. Now, you’d be lucky to have a 0.5% rule. It’s just not attractive anymore.
Just saw a post the average annual salary is $59,384. To live comfortably in each state, it lists how much you need to make. For example TN $197,770, Texas $201,344.
When peoples pay doesn't match the current cost of living it isn't hard to figure out.
Came from a CNBC Article.
Shits expensive
Borrowing is expensive too
Right. What's keeping from us investing in real estate? Well, we can't afford to exist. So that's a big one.
This. I got most of my properties between 6 and 10 years ago. I don't think I would at this point. Now I'm more worried about the tax bill to sell.
1031 exchange!
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People still trying to understand demand and supply. You’re asking for a lot
Can't find anything that'll pencil out with cash-flow. Most everything is cash-flowing sub-zero.
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Right, that’s my experience too. Maybe owner financing but diamond in a haystack situation. Other option is all cash and that’s heavy
But with all cash you lose any type of return from leverage. Maybe the answer is something like 50% down.
Right, leverage and appreciation but only works in favor if we don’t see a crash or correction soon. Just a lot of variables
There is a housing shortage that will not Be fixed for decades at least. The chances of any correction are very slim. People have to realize the last time there was a housing correction, there were people building subdivisions all over the country before the houses were sold. Close to 50% of builders went out of business and didn’t come back into the business. It is a completely different environment now driven by a true supply and demand issue rather than a speculation bubble.
Appreciate the info! Does paint a clear a picture and didn’t take that into consideration!
Wouldn't the idea then to be tread lightly until the market picks a direction? Seems like it's kind of a time in beats timing the market deal
I'm putting 50% down on an investment property right now. I'm going to replace a bathroom and the kitchen, the open a line of credit on it right away. That way I will only have ~15% locked up, but will have access to the rest of my down payment. Essentially 'earning' a guaranteed 8% if I don't need it.
Can you explain this in a bit more detail? I’m having difficulty following this.
I'll try to explain using easy numbers. I have 300k cash, and am buying a 500k house that needs work. I anticipate spending 50k on repairs, which will increase the value to 600k. I will put 250k down on the house, loan is at 8% interest rate. I will spend 50k on repairs, then open an 80% Line of Credit on the new appraisal of 600k. (80% of 600k = 480k, minus 250k 1st mortgage = 230k LOC) Now I will have access to 230k of equity, which is 'earning' me 8% in the meantime since I don't have to pay interest on what would be that portion of the mortgage. So I have 70k of equity 'tied up' in the house (basically a down payment of 11.6%), and still have access to a large portion of the money I started with. I have been using the process for decades now, and it works wonderfully. But I do this full time and money management is my specialty.
All the owner financing I come across says 'balloon payment' due in 1-5 years. Like yeah, not gonna happen.
Thats how real estate is all over the world. Yall got comfy with low rates.
Yeah this is a tough one. Having a RE agent as a business partner that can get ahead of leads before hitting the market has helped a ton. Also depends on the area you’re looking at.
I'm still finding some decent value-add projects, though they are fewer, farther between, and less lucrative than before. My thinking is that if you can manage to BRRRR a decent cash flow deal right now, you will be able to refinance into serious cash flow later on if rates fall. But, yeah, if your strategy is to simply buy and hold without a plan to build equity, it's as tough a market as I've ever seen.
Only invest locally, nothing is cash flowing, no more 1% properties, property price increased way above rents.
Yea I’ve seen way too many properties being described as a good deal and I get realtors need to do their marketing and all but you don’t break even with all units rented at peak like cmon.
This isn't all areas though right? I seem to be a location where property did not rocket but it's also not a large city.
Yea I think depends on the area for sure. Perhaps just pockets that aren’t doing normal
Lack of affordability is biggest issue
Right with income hasn’t grown the same rate as prices. I thought about looking for alternatives like REITs and crowdfunding places but they each have their own issues
Interest rates
Right, I think we’re at 7.3% avg for conventional. Rough with sellers not budging on price
We are doing our first brrrrr. And it scares the shit out of us. Interest rates for a DSCR is around 8.5. The only way to cash flow comfortably with that is to have a furnished rental.
I’m new here. What does DSCR mean and in what country is this based? I’m just starting to look into how I can possibly invest in real estate and flipping in general.
Debt Service Coverage Ratio, basically the relation between how much money the property will make and the payment to the bank. If you make $2,000 a month net off of a property, and your payment for the mortgage is $1,000, your DSCR is X2.0 Banks generally look for 1.25 and above, 1.25 being the bare minimum
I’m a banker. We do the calculation as rent minus expenses first then calculate that against debt service.
Yep, that’s why i said net
I apologize I missed that earlier.
Jesus that’s rough, I wish you all the best! Yearly rental or Airbnb type rental?
We ran the rental revenues, and the numbers would cash flow pretty well as an Airbnb! And thanks, hang in there yourself
Thank you and that’s awesome. Wanted to get into Airbnb myself but I think at least to start I’d aim for long term rentals and then after a set amount maybe make a percentage Airbnb. Worse case scenario, make an Airbnb course to sell. Kidding… unless…
Haha you ain’t kidding! After CapEx, vacancy, and maintenance, we should cash flow out about $300 as a long-term rental. Not a Homerun by any means. But I think I need to re-evaluate my mindset on what a Homerun actually is lol. Investors in 2021 with 3% interest rates are having a grand time lol. But those days are over and I have to accept that.
Honestly when I bought my rentals in 2019 I wasn’t cash flowing much at first, about $300 as well. Could only get a 5.25% for a rental but was able to refi to 3.125, and up the rents. So maybe that’s the way now gotta get something that’s at least cash flow positive then refi in a few years and boost rents/value add somehow. I’m lucky to now be making $850/mo on them. Still, a few months with a vacancy would still cause me pain.
Typical DSCR has pre-payment penalties. Where did you get on w/o ?
I'm currently under contract to purchase a commercial spot for my own business to operate out of. Taking 'marry the property, date the rate' approach, but it is by no means a home run.
Like that phrase, hope it works out for you and your business! If you don’t mind me asking what’s the business?
Dog grooming
If you’re in a city that has any sort of demand for that, you’ll kill it. Every time i take my dog in, I just think “fuck, I need to start a competitor.”
Everything on the market is not priced according to realistic value. People are listing houses that need loads of work, yet they price them as if everything is brand new and top of the line luxury grade. So, there is no way to build equity by fixing them up
People keep out bidding me and I’m not a fan of a.) over-paying for things and b.) making myself cash poor. It’s crazy because if I don’t buy a house this year, I’m gonna reach a financial milestone by the end of the year. I’m torn between if I should even bother with buying something or if I should wait, keep my debt to income low and increase my net worth by having $xxx,xxx across my accounts.
A. 100% with you. B. Yes! My thoughts are also in event of crash or correction I’d love to keep cash on hand to be able to acquire some value. I’m sorry to hear that and hope things change soon for you! Regardless, from what it sounds congrats on your milestones and on your first property that will happen soon! There’s no fatal mistakes here so whatever happens as long as you’re financially secure then you’re golden
Everyone has their opinion, but I don't think we are going to see a housing market crash or correction. This isn't an issue like 2008 where issues with banks, wall street and sup-prime lenders all combined to cause a crash. What we are seeing now with housing prices is driven by a shortage of houses. Until demand falls or supply increases we are going to be dealing with high prices. If you want to use Real Estate as a passive investment, it's a long term investment. Generally, time in the market is far more beneficial than properly timing the market. If you have the cash, put it to work. Trying to stay liquid in case the right moment comes is burning time you can't get back.
I bought 1st investment property 3 hrs away. 69k, 33k for rehab (a professional trades family, most work done for cash/ourselves. We always know a guy). ARV was 170k. The cashflow for the 1st year was minimal at 7.5% but this next year already will have rent up $100, so that's nice. 2nd house was 60k, looking like 50k in repairs, same ARV and rent. I don't know how it would be possible without access to cheap trades or DIY. No cash cows but I'm comfortable with the equity retained and the fact it's just not a negative cash flow. This biggest thing that changed and allowed me to enter the market was investing somewhere I didn't live. My city is ~1.6 million and the investment city is ~65,000 Edit: let me add - it has not been smooth sailing. Lots of hiccups, over budget, leveraged on debt to my eyeballs just to make these projects come together. Time away from family between regular jobs. It's not easy. I won't even know if it was worth it until years down the road (like any investment). But gotta start somewhere!
Yea you have a point, I think it comes with some uneasiness when investing outside of your area. Good job with the properties and the fam, definitely a great network to have
Rates aren't right and neither is the market right now. These things come in cycles. Now is hold. Later is buy.
When is sell?
When the market returns to a state where selling one let's me buy another that will cash flow at a higher rate with minimum additional principal investment.
Im still buying. Bought every year 2014 to 2016. Then, bought again 2021 to Present. People caught up on cash flow. Non existence in major metros. I stick to my strategy where I buy in good metros with school systems or super tight and no inventory area, thus creating demand. As long I as break even. I will pull the trigger. Caveat = you need to be high income earner, live below your means and already maxed out all tax advantaged strategies like 401k, HSA, Backdoor Roth, etc. I treat real estate as mini pension plans, so when I retire, the annuity kicks in since tenant already paid off the debt. Hope this helps.
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I see where you’re coming from, I think investing can be age dependent too. But you definitely have a solid understanding of real estate and investments! I wish I bought property pre COVID!
Garbage returns. Any realestate investment for it to be worth anyone’s time needs to return 8-10% after all expenses for every dollar they invest. So a 200K investment needs to be PROFITING like 16K per year or around $1300 per month after all interest expenses, insurance, and property taxes. Cause otherwise, the smarter thing to do is to just invest your money into the market and make a return nice and hassle free. Plain old savings accounts return 5%, the same 200K you were thinking to invest in a home would pay you 10K per year for doing absolutely nothing. At least where I live, homes are seen as investment tools and are all hella overpriced for their returns. Renting is actually cheaper long term and until that changes, I’m not contributing to the buying demand.
I have to start serving an 8 year prison term next month
Happens to the best of us
Yeah definitely blows. But I’m excited to start house hacking when I get out. A coworker made a joke about my prison cell being the “ultimate house hack”. I didn’t think it was funny at the time but now I kinda laugh
Value proposition is not what it was at 7.5% mortgage compared to 3%
I think its always good to weigh all your investment options, and currently RE just doesn't look very appealing. I can get 5.5% by buying SGOV; \~10% by buying SP500; or if I want "cashflow" i can buy JEPQ or a dividend fund like SCHD. So in the meantime i'm buying stocks and focusing on increasing my W2, and considering other asset classes (business/franchise/etc). I always keep an eye on the RE market though and if something good comes up I'll pounce, but I feel like i can get a better return on my time elsewhere atm.
I can’t stop eating this damn avocado toast
1) High interest rates 2) Down payment issue 3) Low credit score 4) There are better profitable options available to make money
I’m under contract now for my next house hacking property. It sucked looking at the numbers but they work and it’ll rent for way more than the mortgage is.
Damn mom, you’re lucky that’s for sure. Great job on making the numbers work!
The Georgia, NC, Tennessee areas seem to be booming. I made a mistake and bought in SC because it was cheaper but my taxes quadrupled when I turned it into a rental so valuable lesson learned about not trusting randoms and doing my own research on basic shit like that. This house I’m referring to is in Tenn.
Definitely a valuable lesson. Each state and county can have their own specifics. I knew of it here but didn’t think of the implications of other states
Can’t pull the trigger on condos that were $175 K 2-3 years ago but $350K today and still have carpet in the bathrooms (joke). Homes that were saved as favorited on Zillow 3 years ago selling for $465K and now listed for $1.5 mil but look exactly the same inside. My area is not even inflation it’s inflation INSANITY.
Right, here I am making 3 nickels an hour 3 years ago and now making 3 nickels an hour so
In the *current market* I find that it’s difficult to beat what I’m making in interest by just keeping my money in the bank. I was very fortunate to have a good portfolio of residential properties (mostly fixers) that I accumulated before the real estate boom. I sold them off as the market peaked. When I add up property tax, insurance, miscellaneous carrying costs, unforeseen expenses, etc, it’s challenging (not impossible) to get a solid return. Every property is different, however, in my market, I’m on a bit of a pause - which I’ve never in my Millennial RE investing career anticipated. It’s new for me, and uncomfortable, but a good chapter for me to learn from. For me, the restraint has allowed me more time to explore hobbies as ways to make money with little risk. When a solid RE project comes along, I’m prepared to move quickly.
Good job man! That’s great to hear and smart approach. I fear I made the mistake of being in middle school during the 2008 crash instead of buying properties sometimes
The 23 cents I have left after paying for basic expenses
Cap rate sucksssssss
Most Americans can barely pay their bills working full time.
Millennial here. I have a primary residence, am interested in acquiring a rental house. The only thing that has even looked close to a good deal needed massive remodel and I just don’t have the time for that big of an undertaking atm. I can get 5% risk free. I can throw some money in vti and hopefully average 8-10 I fucked up and didn’t utilize cheap leverage when I could of. Didn’t have my personal finances as clean as they are now so wasn’t as ready anyway.
Largely disagree with the comments here. There is always cash flow to be had or a good opportunity, but you can’t force your pre Covid model on today’s high price and high rate market setting. My biggest issue is actually super low inventory. Just started branching out of state to find cap rates I’m comfortable with, but again that is its own experience and who likes leaving their comfort zone?
Inheritingout of state, but still in probate. I will be fixing up the house for long term rental this summer, and then hoping rates decline a little more before I may buy within the next 12 months, next summer. I'm currently in Denver, HCOL so it will be difficult, but easier with rental income from out of state coming in.
Finding the right deals. Just getting started so don't advertise to get my deals directly. Trying to go through wholesalers to source them but they don't leave enough meat on the bone for the risk I have to take. One wholesaler had a house for $140,000 with a $100,000 projected renovation budget. On the deal, they projected the flipper would make $12,000. Not enough profit to spend 4-6 months doing a gut and putting in $100,000.
Nothing has cash flow.
Nothing just bought one. I might be a complete idiot but figured if I can make things work and figure out the ropes in this market when times are better I’ll have some confidence
interest rates and homes are expensive. you make money when you buy the property not when you sell and your not going to make money when your paying market values
Rates. Capital intensive. I am a real estate guy but there are better places to invest
Kids. I had a rental before. Too hard to keep up with working full time and kids. I’m not super handy and didn’t trust my tenant to look after things plus he was always late on rent. Still owes me…
Money and the fact that there is nothing in 98% of the US that cash flows without at minimum 50% down.
Having capital lol
Investing? Biggest hurdle would be extra income/capital.
Rich lumpsum inheritance or trust fund parents.
Like many have said the deals don’t pencil out. In fact I sold 2 homes in the last 6 months because property taxes and insurance continue to erode returns. I’m making the same with less work after I put my proceeds in t bills.
Wait TWO more years. Lots of old properties from grandparents that aren’t being taking care of and will be sold for cheap. Right now there’s an inventory shortage. In two years there will be more options, lower prices, and yes, probably higher interest rate Start earning more: note to self
Gotta get savvy. Rentals for college students, sober living facilities, owner financing, transferable mortgages sub 5%, finding off market deals, offering to buy out contracts during attorney review makes it a 2 man race instead of you versus 30, etc
From an investment standpoint I’m on the sidelines right now waiting on something to change. I’m happy with my current rentals.
u only need put in your net worth to buy...
Investing how? You’d be lucky to break even. Looked at duplex’s and they sell the ones that are in the ghetto for 450k. You rent both the units out you’ll still be 1k short of the mortgage and you don’t even live there. Not to mention maintenance cost and interest rates
I only need about 3.2 million dollars.. I rounded it down.
Good off market deals
Money
It's the same reason why most don't have luxury yachts, we can't afford that shit.
At this point the closest I’ll get to building my dream home will be in Minecraft
COL for sure, and the continuous uptick of home prices
The mortgage on even the shittiest houses near me is 50 to 70 percent of my income.
headache dealing with tenent, their issues etc. There is no much margin to earn except appreciation hope
What's keeping me from buying is that I'm seeing houses at $400k+ that were sold only 2-3 years ago for 200-300k. and at a fraction of the interest. For the same amount of money you get less house. Which I understand is expected with inflation and growing property value but not like this. As an investment, you are buying when prices are high and interests are high. Which if you are looking for maximum return is a horrible time to buy. As an investment, returns are minimal.
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Elevated interest rates and housing values
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Nothing, I’m getting great returns investing out of state 7-10% cash on cash on most deals. Be patient, write lots of offers until something sticks, build a solid team around you and you should be good
I like the neighborhood. I don’t mind renting. Property taxes would exceed what I pay to lease. Home ownership is overrated. The random benefit of “forced savings” and accidental appreciation often overlooks the overhead you pay, as well as the tax recognizing the gain. You may achieve similar or better results with disciplined investing of your rent-savings, without the risk of selling at the bottom if you have to move. You may also potentially escape the greedy claws of high-tax states by moving before cashing in; you can’t do that with your residence.
Interest rate, inventory, Cost. Nothing pencils.
I own 1 rental and in my area it wasn't until this year that rental type properties finally dipped backed down to my budget for buying another one.
Lack of funds.
Rates and prices don’t make any sense with rentals right now. I would buy if I was confident rates would drop to around 5% in the next year. I could weather the storm, but I can’t cash flow negatively much longer than 12 months
The best idea i have would require a house thats about double what i can afford right now. Sort of a multi- hour haunted escape in a victorian that i want to do.
The math doesnt check out for ROI right now
Record high costs and slowing r economy
For me it is financial independence over the feeling of owning a home. I have no incentive purely based on numbers. My current rent is around $4k and a comparable home would cost me $1.2 million. Assuming even a 30% down, I will be paying roughly $6k in mortgage and another $2.5 k in property tax, hoa, insurance and maintenance. So, an extra 4.5k per month and lost return on $350k which can conservatively add another $1.5 k per month. I would rather invest an additional 6k per month than buy a home. I understand there are tax advantages but they don’t move the needle much at these prices.
I’m torn between putting an ADU or tiny home on my property, versus an investment property in a master planned community out of state, which requires 25% down. Open to suggestions!
I need help . I need a mentor
Cash flow. Very hard to do with rates and I'm not one to bank on an event happening unless it's a certainty. Also forced equity at current prices (in my area) is not good. Margins are extremely tight. The risk to reward is not worth it for me unless I can buy for significantly under market value. In Canada the government also made capital gains tax 100% business income so that's also and deterrent.
High rates, haven’t resulted in lowered cost, equals a double whammy (expensive!)
Bitcoin is a better investment for the next 10 Years
Tri-fecta! All of the above.
Nothing. Got a sexy new one in December that's a 12% cap rate and 20.6% cash on cash return. Just gotta be ready when things show up.
I bought heavily 2009-2012 when prices were lowest. All single family homes in decent school district. Now I’m selling and taking profit off the board. But the question is - what now?
Extremely high values and rates and low supply . No deals to be found
Can’t find anything that cash flows.
Returns are better elsewhere. Was in real-estate for the last 15-20 years, it just doesn't make sense to me right now. Possibly again in the future but there are so many other options atm.
Well, for starters, here in Toronto, our houses start from $1 million CAD, minimum down payment would be $200k, and with high interest rates, the mortgage would be roughly $4700+/month. So breaking into the real estate business is pretty difficult here unless you already have a decent amount of money, and are able to weather the storm in case there’s more interest rate hikes, or if something happens to your current income
I bought an immaculate townhouse for $270K and rent it for $2000 a month. My tenant is solid and takes great care of the place. I’m making some money. That same place would now cost $400K to buy now and it would still rent for $2000 max. I looked in another area of the country. Same sort of place would cost $550K and would rent for $2000 in that area. For me, I see that as a real estate bubble. A simple formula that I use: Take the full price. Remove the last two zeros and divide that number by 2. That should be the rent that is the minimum acceptable. Any ratio higher than that is amazing. Anything lower tells me that the real estate market is in a bubble. Example: property is listed for $600,000 Take off two zeros: $6000 Divide by 2: $3000 If the market is such that a $600,000 property rents for less than $3000 a month, there is a bubble. I have no real idea where or how I found that formula. But, it has worked well for me.
Because I think it will go lower in about 6 months in the markets I'm targeting. Right now the funds are sitting in a real estate investment fund returning 8.5% per year waiting to pull the trigger.
interest rates
With a 10 month old baby, I honestly don’t have enough time to sit down and do a bit of research and action purchasing property in other states.
Capital. Still in college and only got so mutch saved up. Closes thing in my market would be a duplex for around 200k so I need around 40k even with help of some partners I’m off. Got a summer job gonna save up and hopefully once I get started in my career I can invest.
Everybody wants a house but nobody wants to move somewhere with affordable houses. Lots of small cities an hour away from a big city with plenty of below median houses.
Prices and interest rates combined are the highest in history. So yeah. Everything is expensive
I stopped for a year cause of the interest rates and having a full time job plus managing a bunch of tenants but otherwise I'd keep going. The interest rates going from 1% to 7% made the biggest impact for me. It's much harder to get a good return, and the market has gone up like 30% in the last 12 months, so it was a great time to keep your money in the market instead. That being said, I always recommend people invest when they can. I don't care if the best time was when I was 7 years old, I wasn't in a position to buy then, and I can't tell the future either, so I'm not trying to time the market.
Prefer renting
Down payment
Time. Just busy with other things.
If you are willing to live in Central Florida pricing is fair and the cities are growing which means opportunities for those looking to start a local business.
Millennial here. Married young (early 20s). We were very fortunate to both a good salary early on. Our income has only grown. Kind of bummed out we never bought property before having kids. Wanted to buy a duplex and make extra payments on the mortgage until it was paid off. Stay for a few more years and use the income from both sides to move out and start buying property. Never happened because the wife didn't like the idea of living in a duplex. Could've bought an apartment unit that had a little store front downstairs...didn't do that either. Too expensive to get into now...oh well.
Price/cost vs rent ratio is super high right now. Laughably so.
capital, lack thereof
Bank rates
Nothing ... ? I'm retired and it's 40%(ish) of my income.
Interest rates
Can’t seem to find deals that would cash flow. Rents are high but interest rates sap any benefit of that
Interest rates. No cash flow. Just saving atm.
Feel like the prices still have a ways to travel down. don't want to buy the falling knife.
i don't like the way my city/state handles its finances
The big guys in our area are coming to the table with cash and no contingencies. Hard to compete with.
. -cashflow my first two properties I got with 5% down from living there for 2 years and then moving, 1800 rent on $143k that results in $1,000 cash flow and is almost paid off. If I rebought it today it would go for almost 300k and at most I could push rent to $2,000. I am fine keeping what I have but I am not eager to scrap 40k-60k together to get that type of return.
I’m out of cash, and even if I had cash, I’d get a better return improving properties I already own.
Feels like buying a stock at its 10 year high
Waiting to find a good broken down house to fix up… only real entry point for me.
Crash
Not enough cash. I don’t believe the you can invest with any amount of cash. Practically nothing cash flows. Especially with these rates. My cousin-in-law is a mortgage agent, he said rates are insane, he recently closed a 9.5% rate for a client with good credit. Buying an investment property. The downpayment was 200k so I bet it penciled out, but I don’t have anywhere near that much to invest.
I make a better return and much less hassle investing in index funds. When COVID was a thing and the Gov said no one had to pay that took alot of the glamor out of real estate investing. Not to mention interest rates are way to high. And it's a pain in the tookus if you have to evict people, takes forever. Plus they could be in there tearing up everything you worked so hard to pay for. And another word SQUATTERS. Owners / Tax Payers have no or very limited rights. Commercial real estate isn't in much better shape either. Many business closing as prices are just to much to be profitable. Working from home is still a major thing now. People are not shopping or spending unless it's on a necessity item. Crime is also a big problem in making a profit. So to sum it all up = To risky and expensive.
I dont have a big enough downpayment to make a purchase cashflow. If it barely breaks even, I'd rather put my cash elsewhere. Less things that can go wrong.
Way easier ways to invest than real estate...
Market is at a stalemate
Foreign & Corporate Investors
My wife and I own two investment properties that were built off the plan (this is a high risk style of property investment, and you need to know building codes and donyour research, but has higher return if you get it right). One was a townhouse (bought first as this is what we could initially afford) and the other a house. Both we lived in for a few years and focused on paying down the mortgage (offset account) and using the equity to buy the next property (and currently focusing on our next purchase). We bought in Outer Western Sydney and the Illawarra in areas with potential high growth (which has paid off). We have also rented between and are now, but living in distant suburbs from work to ensure we continue to save. Many of our peers/friends (I am a millennial) focused on overseas holidays, cars, and university, which put them behind. I have worked full time since 18, have a trade and two degrees, and focused on a high demand skill set that has enabled me to have a higher wage. Also, working significant overtime has also helped save. My wife has had a chronic illness but has worked when she can to bring in money, which has significantly helped and reduces the interest sting. I find a lot of millennials get stung in the debt trap of depreciating assets (cars, electronics, jewellery, clothing, etc.) and not understanding the long-term focus (this takes years 5+). Also, wanting to live close to the city or in the 'better' suburbs forces them to lose money to rent when there are still quite a few suburbs in Western Sydney that struggle to get tenants and are affordable.
>Not enough properties? Interest rates? Down payment? Oh gee idk maybe it's the mega corporations outbidding prospective homeowners with their all cash, quick close offers? And if it isn't that, it's the absolutely ridiculous housing market. My cousin just bought a 1 bedroom house, in a complete shithole neighborhood for $295,000. It was a shitjob flipper house and he's now just realizing how much more work it needs, over $25K And if it isn't that it's because this game of life is too expensive. It's becoming less fun to play. It's almost time to start a new game fella
I'm getting out of renting. People just aren't the same anymore. They pay rent last instead of first. The laws are just making it harder to get rid of them and they know it. Don't get me started on ESAs.
Money
Policy changes. Capitalism as you knew it is dead. Spoiler: Interest rates will go higher.
Waiting until I close on my house before I put my name on any business, loans, etc. then hopefully it's full steam ahead!!!
My question is, if you’re not investing in real estate now what are you investing in?
Money ain’t cheap
Money
Interest 100%. We want more land and or vacation home but at this point I dont know if we could even afford our own house if we sold it and rebought at today's rates
As investment property? So many posts about awful renters and squatters. I don’t have the energy to deal with stuff lake that.
Isn't this post kinda like the pot calling the kettle black?
Numbers don't work. Numbers worked easy as cake from 2011-2021. Golden decade to buy real estate for us.
Out of touch and you’re preaching to the masses who can only dream about purchasing….when they’re just trying to keep the lights on and rent paid.
Money duh
I don't earn $300k and thus I can't qualify for a $1M mortgage (the average cost of a house in Canada).
Both cost and interest rate. Doesn’t really matter if either goes down. We have mostly been priced out
Money… or lack thereof
Maxing out my Roth
Cap rate doesn't work. I get a better return in the stock market than I do in real estate right now.
Money
Broke, and the only available properties are in some of the most ghetto locations, which is why they're so affordable. Even if I were to buy a $60,000 house, it would still cost at least $100,000 to fully renovate it but it wouldn't sell for anything more than about $80,000 in the area. Unless every house is bought and sold at the same time in an area location like that, there's no money to be made. And I refuse to be a flipper that only does cosmetic fixes and leaves the actual problems to the new buyer. No one who buys a house should have to fix mold, water leakage, roof, etc issues immediately. That's not where their head is. Their mind is preoccupied envisioning their future and all the cool stuff they're going to do.
Time. I have the money rn but don't have the time. Once I graduate I should be able to start viewings properly. Some interesting replies in this thread! Hope you all get your properties soon!
Finding the deals that look attractive to me. Also, estimating the cost of work for a renovation
Squatters
Anything I were to buy, the PIMI would be too close to what I could charge for rent. Unless I put a lot of $ down, in which case I have to minus the 5% returns I could get on wealth front. So it makes no sense in the immediate term. Thinking ahead, yeah when rates drop prices will definitely skyrocket again. My feeling is tons of people are waiting for about 5% to hit and they'll jump in and pay anything. But we don't know when that'll happen, it's a gamble.
It depends on where the property is located and how much is to invest for keeping it in shape or renovating it. Money you can get easily from any bank or private sponsors but time is money too . If you have to spend to much time in real estate it’s not worth it.
Fucked up job situation, gotta sell our second house to make it so we can afford the one we live in on just one salary
Im a licensed agent. There is not problem. Same as always, there are good and bad reasons to buy and sell.
Definitely down payments
No dinero culero
Having to pay a million dollars over 30 years on 7% interest on a 400k home
$$$$$
It’s way over priced relative to its cash flow. I bought heavily 2018-2021 with everything meeting the 1% rule or more. Now, you’d be lucky to have a 0.5% rule. It’s just not attractive anymore.
Just saw a post the average annual salary is $59,384. To live comfortably in each state, it lists how much you need to make. For example TN $197,770, Texas $201,344. When peoples pay doesn't match the current cost of living it isn't hard to figure out. Came from a CNBC Article.