@Ola Dantis
Your words are summarizing my concerns.. while i call for the catch up btw rent and prices, its not happening. This is not sustainable in the long run. Landlords needs to have their profit as they run the risk AND keep places up for rentals. Their margin is being smashed and they are surviving only cause inventory was bought long ago. But MTM shows a different picture. Marginally many houses dont match most of the criteria. Its all over BP. Ao ppl now start to think they need to compress their margins. This is a mistake!
Rehab cost, maintenance cost is on the rise. Default rates are on the rise, so another cost in average. Obviously its not for all, but risk is on the raise...
Rates are low for owner, but investor dont get same lvls. Lets be franc, a cash out refinance rate is more expensive than owner rate. An investor is also more expensive. I have 825 FICO and trying to raise 70% LTV got average 3,75% and best was 3.5%. Thats far from sub 3% ppl point out.
I am not calling for a crash. But an adjustment. Either one or the other looks wrong. I really think economics are not supportive on the prices we are seeing...
Another factor.. lots of cash out buying houses might be “new RE landlords trying to make 5% against 1% in the bank. Not sure how long will that lst...
On the foreclosure, banks will renegotiate tenors and incorporate in the new contract what was not paid.. but if jobs doe not comes back, some of that will hit market., but at least this time prices favoured those owners...