For investment properties, they are looking at the amount of income generated compared to the debt service on the loan.

How do these terms compare to traditional loan options?

Comparing potential returns and factoring in tax benefits definitely adds a valuable dimension to the decision-making process. it's a great reminder that keeping things grounded in math and personal situation is important. 

Some lenders compare this to only the actual mortgage payment and some include an expense factor.

Tiffany, We all have the "I wish I never sold that house" story, but also compare that with your happiness.

They tend to start doing "fire sales" which means dropping prices which causes all of the homes they closed on the previous 12 months or more to lose value based on new discounted comparable sales.That is why you see builder always offering crazy "Builder credits" which in most cases are "ghost" funds. 

However, now that we’re heading into fall, we can see that 2024’s summer selling season was slower than 2023, with closed sales in Austin down around 16% compared to last year.

While some point to tax benefits or the potential for higher interest rates compared to banks, the real motivation is usually the perception that the seller can secure a higher price by offering financing.

Investors are seeing consistent bookings throughout the year, making it easier to predict cash flow and maximize returns.Lower Acquisition Costs: Despite the rising demand, Indianapolis still offers relatively low acquisition costs compared to other major cities.

Great idea to compare with AirDNA!