Increased rates makes it more difficult for first time buyers because 1) the financed payment goes up 2) it decreases movement which results in boomers, etc not downsizing which lowers volume on the market and helps keep the prices from falling.Other drivers for these large rent increases are the recent property appreciation (last 10 years have had huge RE appreciation) and rents lag the property value increases, the Covid eviction moratorium has identified new risk that must be reflected in the income, the continuing trend to move to high growth areas which results in a large housing shortage in these areas, the lag of new housing starts that has existed since the Great Recession.  

Purchase price: $1,300,000 Cash invested: $16,000 Sale price: $2,000,000 With just 16k of our money, using creative finance, flipped this house in a ski-in location in about 50 days.

You do the 1031 instead of the seller financing.

In a subject to transaction the buyer may be in a precarious position if the note is called and he doesn’t have access to capital to pay off the note, or doesn’t have a capacity to obtain new financing.  

How did you finance this deal?

Our mentor How did you finance this deal?

Hi Dav,Yes, there are short term financing for 5+ units, usually in 10-12% interest at the moment.

How did you finance this deal?

We have a plan to push them through financing with a good lender that deals with this type of loan. 

On Market How did you finance this deal?