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Updated over 10 years ago,

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5,024
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Curt Davis
Agent
  • Flipper/Rehabber
  • Memphis, TN
2,573
Votes |
5,024
Posts

Overcoming Inflation

Curt Davis
Agent
  • Flipper/Rehabber
  • Memphis, TN
Posted

We have several clients that we have worked with in the past ( on average 2-3yrs ago ) and when we were selling them houses the simple numbers looked like this:

$62,900 sale price with monthly rent of $850-$900.  This was what we were able to provide back then.  Then came the hedge funds and pricing/competition rose drastically.  Even though the funds have stopped buying, homes we get now that rent for $850-$900 are sold  for about $75k-$80k on average.  The cash flow is still good but these older clients are having a hard time grasping that pricing and values have risen that much, it keeps them from buying again. 

 Are there any other property providers who have experienced this same issue?  I try to let them know that prices are still considerably low compared to what these homes were selling to circa 2008.  Just curious. 

  • Curt Davis

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