All Forum Posts by: Zachary Inman

I think this really depends on your risk tolerance. It might be trite at this point because we all say it constantly, but no one has a crystal ball. Who knows when the next correction will happen! If the past 5 years have proven anything, it's that black swan events are inevitable - but it's essentially impossible to foresee (except in hindsight). 

So, given we can't see the future, what's the next logical step? Underwrite deals to your comfortability. You can make all kinds of deals happen, but if we hit the GFC 2.0 then you'll be left with a whole basket of lemons. You can underwrite as if everyone decides to move away from your market tomorrow, but then you'll have zero assets in your portfolio. The true art lies in the middle; knowing your markets well enough to make deals happen while hedging your bets - and there's no way to do it perfectly. If someone claims to do it perfectly, they've either never been through a downside market or are trying to sell you something.

Higher rates will also push more people out of home-buying, which will increase rental demand! Underwriting will be tight, but in many markets, the macro trends are pushing rents up significantly, so picking your markets is as important as ever. 

Turning a 2-4 to a SFH is tragic. They usually have awkward floor plans (and sketchy renos) and so much wasted rental potential.

Location: appreciation potential, school system, different job sectors, good infrastructure, good local govt. 

Then, it's just down to if you're making more money on a deal than you think you can put in, and the effort required. 

I would look at all the other rental comps in the area and renovate the unit to where I want to be placed in the market.

These policies are not typically as firm as they say. I haven't seen this before, and it seems like bad business... they still make money on smaller closings. Do you have a POC person that you can talk to about this? Might just be poor management. 

Look into hard money private lenders. 

It's honestly best to leverage a realtor to set up the searches for you. It's good for them because they have a chance at your business, good for you because you get access to the MLS feed.

Too high a risk profile for RE investments. The only thing that makes sense if somebody made some cash off crypto and are moving it to the REI end of their portfolio.

Indianapolis is a great market right now.