Cash Flow Rentals in Sioux Falls

[Account Closed]

Sioux Falls South Dakota has no shortage of house flippers and re-modelers. But it seems like a large chunk of people aren't investing in cash flowing rentals. Why is this? Obliviously there aren't none of these individuals but it seems like there is a shortage of them looking to actively acquire new rental properties. The Sioux Falls rental market is strong and even during difficult times and recession the market hasn't been hit as significantly as other markets. Is there a rhyme or reason behind the shortage of cash flowing rental buyers in our city or can anyone shed light onto a good reason to avoid them at the current time? 

Would love to hear all thoughts and feedback on this and start a conversation.

Thank you all,

Brady

[Andrew Adam]

I know dozens of buy and hold investors. Some of them are just starting out and others are just looking to add to their own portfolio. 

I have noticed several wholesalers pop up in the last 2 years. It seems they are getting properties that might either be hard to get traditional financing for OR only good for flippers. That might be the reason you are making that observation. Many of the buy and hold investors that I know in Sioux Falls will be using traditional financing and so are usually not going to do a deal with a wholesaler. And even those that are able to buy without traditional financing are more likely to use someone they trust and not someone without a license that just started wholesaling.

That is just my take on your observation on the shortage of buy and hold investors.