All Forum Posts by: Zachary Inman

According to CAR, San Diego county is still up 11.7% YOY. I believe this puts us down nearly 10% since the high. I expect there to be further decline, but on much lower volume.

As an investor I would rather pay less for a property with higher rates then having the same P&I on more expensive property with lower rates. Interest is tax deductible. Property tax in my state is based on purchase price. If interest rates fall, the property can be refinanced. The issue at this time is that the rates have risen substantially more than the prices have dropped.

At this time I would only purchase either a property way below market price or one that I have identified a great value add. I will not be paying market price without a great value add.

Good luck

This is good insight, I didn't consider the tax implications of paying interest vs paying a higher price. I agree that forcing appreciation is still the best strategy.

0 Votes

Quote from @Caleb Brown:

We have seen DOM creep up to 20-30 days. Overall KC is stable compared to other markets that have exploded(Utah, Nevada, Idaho, etc). We saw a 10-15% price increase (year over year) over the last couple years so it is expected for things to calm/drop. When looking for deals I try to discount the ARV 5-10%. The good thing about the current market is on the buy side you can be aggressive. For deals sub 200K we are offering 5-20K under asking

Finding success by being bolder with offers? I've had mixed results. Some sellers still think it's the same market it was 6mo ago

2 Votes

Quote from @Amy Raye Rogers:

What we are seeing in my Midwest location is a massive slowdown in transactions. The trading volume will go down until some level of future predictability returns for buyers & sellers. It's amazing to see the psychological impact of the headlines.

I agree - the psychological element is huge. It becomes a self-fulfilling prophecy: when people think prices are going down, they don't buy, and prices go down.

0 Votes

Hey BP!

My home market is Indianapolis, Indiana, and I'm seeing many price reductions following the continued increase of rates — which comes as a surprise to no one. I'm prowling the market for good opportunities, as always, but can't help but think that it might be best to hold off for a bit to see some more normalization. True, the cost of money will rise, but I can't help but think it'd be a less turbulent acquisition environment in a few months or so.

Two questions for you all:

1. How significantly are rate hikes affecting your market?

2. What is your short-medium term strategy in the current environment?

3 Votes

Quote from @Jovonte West:

So last week I tried to get pre approved, because my goal is to house hack but I fell short because my credit and I don’t make enough, so I’m trying to figure out the next step to get my feet wet I have 5k available to spend. I figured wholesaling would be perfect I just need about 10 cash buyer preferably 5 fix and flips and 5 landlords and I’ll do whatever to find deals.

I applaud your ambition! Wholesaling can be a tough game to break into. The biggest two things you can do to get to your first house hack are: save cash and build credit. There are lots of ways to do both, and I don't know much about your situation, but focusing on those two items is key! Best of luck!

0 Votes

Atlanta, Georgia

Live in the house to get the best terms/loan type. Makes it easier to put your first deal together and build equity to leverage into your next.

2 Votes

Cincinnati, Ohio

Sure, but be prepared for everything to go wrong. It's always more work than you think. Also, if you plan to do all the repairs yourself — don't.

@Scott E. gives great principles earlier in the thread.

0 Votes

Flipping will certainly have thinner margins in the current market. Buy and hold has its own problems right now, but with rents inflating as they have been, there's certainly some money to be made.

0 Votes

Philadelphia, Pennsylvania

Rate hikes and competition are killing deals, but I'm optimistic. The market can't continue as it has been. Competition is still high even while prices are softening, but as we all know on bigger pockets, that just means more legwork on the acquisition side to make something work.

Personally, I think holding cash isn't the best strategy for me. I'm younger, and because I have a long runway to recover losses, I have higher risk tolerance. I have my emergency net, but everything past that is getting dumped into stocks and real estate.

I work for a Midwest Syndicator. The execs are watching the feds like hawks, trying to keep agile on acquisitions to lower investor risk. They have a lot of liquidity in the war chest right now, downside markets provide some of the best deals, and they've been through their fair share of turbulence.

2 Votes

Oakland, California

Quote from @Daniel Fuentes:

Quote from @Eliott Elias:

Focus on building relationships and cementing yourself with a good reputation amongst your peers. The ones who are in it for the money don’t last long

Thanks for the tip!

How would you suggest I start cementing a good reputation? Show I join some clubs or attend some events?

The best way is to help others without expecting anything in return.

1 Vote

San Jose, California

All Forum Posts by: Zachary Inman

Zachary Inman has started 5 posts and replied 309 times.

Post: How are you responding to price cuts?

Post: How are you responding to price cuts?

Post: How are you responding to price cuts?

Post: How are you responding to price cuts?

Post: I’m finally figured out the niche I need help getting started

Post: New investors financing

Post: Should I go into house flipping without experience?

Post: Thoughts on changing Strategy?

Post: Recession Investing Strategy

Post: No Experience Newbie