How is your strategy changing? Sitting on the fence...

[Byron Bailey]

Due to interest rates, the buyer pool is narrowed - houses are starting to sit on the market longer, and prices are being dropped more frequently.  Also due to interest rates, refinancing is more expensive, so often times more of your own money needs to be left in the deal in order to make rental income make sense, which ultimately slows down your ability to move from project to project.  

How are you all pivoting due to these market changes?  

Cheers! 

[Ben Bagnall]

Over the last couple years, my flips mostly have been properties at the high end of the price range for my market. For the near-term, I've changed my strategy to focus on the mid-level price range as that segment of the market is what remains most active from my observation. With that said, I will be extremely selective on any flips as I think the current environment lends itself better to buy and hold - taking market risk for a resale off the table. Specifically, I'm looking for BRRRR targets to leverage renovation know-how and efficiently recycle capital.

As others have mentioned, price negotiation has shifted in the buyer's favor - so I'll be running my estimates conservatively on ARV and offering the price that makes the numbers work, not what the asking price is.