@Jay Hinrichs Aren't the returns on those below the rate of inflation?

I truly don’t mind negative cashflow properties as most of your wealth will be made with inflation/appreciation but I also wouldn’t turn down a guaranteed 11% return. would it truly make any difference if that 25% down made you cashflow positive $100?

The business model incentivices the turn key operator to save cost on the rehab, inflate the ROI and - obviously - sell the property for the most amount of money.

While this isn't directly in the 5 boroughs of NYC, as housing continue to increase in Demand, that particular Economics is like a rising tide where all boats will float.What I believe will be an issue in the future of all localities is whether or not there is a push to support low income residents and the homeless.There is a cost to bear for it.

Why do you need 3% inflation in the prices for your plan to work?

I think that factors such as short supply/ high demand, low interest rates, and asset price inflation due to the massive injection of liquidity into the capital markets will all keep property values elevated for the foreseeable future.

@Kenton LeVay there is less supply than needed most markets. interest rates down meaning the same payments go further and the money supply was increased from 12 to 16 trillion meaning a lot of inflation.

For my part the deal I’m currently work on is in a small 2 floor low rise with multiple owners that have been there for decades.

I asked around and with the Covid-19 impact on supply chains and rising inflation, the cost estimated I’ve been getting are very high ($6.8k).There’s nothing wrong with the current setup but I think it’s a value add (yield $150/month rent increase) and less hassle for tenants.

At this point the Feds tool of lowering rates is almost worn down and the hope is that the economy keeps humming to be able to slowly raise rates back up and keep inflation stable.