Thank you so much for your time and consideration!

Why should there be any correction in the housing market except for investors who are over leveraged and will have to unload properties as rental vacancies rise.

For years now prices have been rising faster than rents in most places, meaning cap rates have been compressing, which lowers returns.

You need to calculate your net cash flow taking mortgage, property tax, maintenance, vacancy, insurances, property management, utilities and whatever other cost you have into consideration, it should cash flow after paying all these costs( and personally I also stress test whole thing with lower rent and higher interest rates just to be sure).

What percentage should be taking in consideration when calculating the MAO.

@Kathleen McCabeWhat you are not taking into consideration is other expenses like capex and maintenance.

Great returns, but the values seem to never rise, according to him).As the market evolves through the pandemic, values will probably begin to drop, and foreclosures (or forced sales) may begin to rise, so the timing might be right for acquisition.

Then as they are soaked up by the rising next generation(s), prices will continue to rise. 

Check out this chart from my Pandemic Investing(TM) presentation the showing the mid-rise and high-rise building boom.

@Evan HaagThanks for the advice, I’ll definitely take every piece of advice into consideration.