Times are tough, how to navigate

[Mark Mazzucco]

This past month, in the midst of tough real estate market due to elevated rates, I successfully helped 8 of my buyers close on homes! This stands as a testament to the fact that even in an ever-changing landscape, there are still abundant opportunities available for those with the right strategy and mindset. With the higher interest rates and a lot of people pushed out of the market because of it, there's definitely a lot of deals out there for any of those that can manage a higher payment short term.

While the current interest rates might be higher than preferred, it's essential to remember that they are not static. Rates fluctuate, and when they eventually drop, the refinance will help the monthly payment make much more sense. It's a waiting game, but patience is pivotal in real estate. As long as the investments cash flow positively now or close to it (especially in the case where you are living in it too), the returns will be even more impressive when rates decline. I always tell my clients when I am pre-qualifying them that they have 3 options, 1) keep paying rent, 2) buy when rates are low and the home prices are higher and more competitive to buy or 3) buy when rates are high and there is more deals and less competition and refinance as rates drop...To me I like the higher rate scenario so that I can get more deals and negotiate more with sellers.

Almost all 8 of the deals I closed are using the "house hacking" strategy. By renting out portions of their property, whether it be a guest house or a designated space on platforms like Airbnb, they're significantly offsetting their monthly mortgage payments. In some instances, this strategy covers half, and in others, the entirety of the mortgage.

In conclusion, the present real estate market, with its perceived challenges, is still ripe with opportunities. So don't be discouraged and happy house hunting! 

Let me know your thoughts!