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Updated almost 3 years ago on . Most recent reply

User Stats

25
Posts
15
Votes
Alex Deters
  • Rental Property Investor
  • Lexington, KY
15
Votes |
25
Posts

Commercial, Rates, Price, Rent.

Alex Deters
  • Rental Property Investor
  • Lexington, KY
Posted

Ok newbie here so sorry if the answer to this question is obvious.

With the Fed raising rates, does this mean that sellers will have to lower their asking price for investors to offset the higher interest to help the property cash flow? Which should also the increase cap rate of said property correct? If not, what is an investor supposed to do? Keep raising rents?

Let's say the sellers have to lower prices, does this mean that rents will have to be lowered as well? I don't know if rent is directly affected by lowering prices or a market crash so I'm curious how that works.

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