How is anyone making $ right now?

[Ell Jay Lindsey]

Hi, I'm a new investor with 2 rental properties (Paid Cash, Full Renovations needed on both so that's where my experience comes from, now their successful rentals) & a fairly successful small multi-family flip out of state. I analyze multiple off-market deals thru wholesalers & my local network that know I'm a "Real" cash buyer on a daily basis and I can't get ANY deals to pencil out to cashflow if using the BRRRR method at 7-8% rates. Cut the purchase by 50% off asking, little to no renovation budget & still deals aren't cash flowing if you pull any money out. What am I missing? How are people making a "business" of investing using this method at this time? Those same deals with logical numbers I can flip & make $15-$20k estimated but personally that's not what I want to do....but is that what most are doing right now just to keep their Real Estate business flowing?

[Bill B.]

Obviously "real cash buyers" cash flow. People doing 1031's of paid off properties for replacements that are only 20-30% more expensive. People switching to MTR or STR are collecting 2-4x the rent. House hackers who are more concerned about saving rent or are doing rentals by room. LTR landlords are the most price sensitive and have to pay the least. They will only win by finding or making deals the others don't know about or taking a worse deal. Imagine if they accepted the same returns LTR landlords did. They'd be paying even higher prices.

Ps. I just did my first 1031 to buy my first new build. It equates to 60% down and a builder buy down of the rate plus closing help and it would still look like a bad investment to an outsider who didn’t know about the $100k in taxes I saved.