Not knowing exactly where the market is going, although models are predicting another crazy year here in Seattle, is enough for some people to just take a break and see what happens.Lastly, as you noted, knowing the economics is a key factor here and in our market, it's simple Demand outweighing Supply by ridiculous amounts.

Nevertheless, I do predict for rents to catch up at a rapid pace.

In fact, I'd go as far as saying that my net worth is probably double what it would have been thanks to everything I've learned from running countless projection models--without them, I'd be flying blind.The purpose of running projection models is NOT to perfectly predict the future (nobody can do that).

https://www.cgprealestateconsulting.com/post/2024-housing-ma...

If you can predict the cost of energy, don't bother with RE and go make a killing in energy trading.

Stay tuned for next month’s article where we’ll show you how to use this information to predict the financial future of your business using a cash flow forecast.

Why, most other loans will usually require some stable income and may give you a higher rate/unfavorable terms since you won't have predictable income.DSCR loans are qualified based on the amount of income the property will make, not your personal income.

Obviously this is impossible to perfectly predict and I know it can vary significantly by area, property size, condition, etc, but do you have some general guidelines/principles you stick to when doing the up-front analysis?

So, we've probably been averaging about 10% per year--in a year with 10% appreciation, that hypothetical portfolio appreciates $250k.  ...so, since 2015, that portfolio has appreciated about $250k per year on average (at 10% appreciation), and never less than $75k per year (which would be 3% appreciation)....now, granted--this year, we may not see any appreciation, and we may even see a downturn--many are predicting a downturn of 5-15%, but given the appreciation history, a downturn of 5-15% isn't so bad after 8 years of 10-20% appreciation.Now, let's look at the cashflow of this hypothetical portfolio in more detail: five  SF 3 br 2 ba B grade properties.

Airdna can be misleading if you are just going of their prediction.