Are you looking for real estate?

When would you start buying more rentals?

quote:

---

about a year

---

This. Plenty of opportunities for those who have cash.

Spent the last month renovating a Florida investment condo. All everyone is talking about is the value of their homes

I was under contract 5 days into the Reno…. It’s a top, and I am out. Still have another one tha I have for personal use when not renting

New construction is still pedal to the metal in Tuscaloosa. Major builders not named DR Horton have introduced more of a mix in their builds. Smaller 2/1, 2/2 and 3/2 builds I’m seeing more of.

DR Horton IMO is fisking trash, though they do have some crews who seem to care about their work and you get a good one. I wouldn’t chance it though.

If you’re in the market I’d hurry though. Interest rates should go up and I don’t see them dropping for at least 3 years

Maybe this deserves its own thread but what if you are interested in scooping up a property and able to float the interest payment until they drop rates in a year or so? Credit is extremely strong (800) can I treat the situation the same if a deal shows up?

quote:

---

So, the house doesn't cash flow? Float the interest payment?? As in the interest difference from a 3% to 6% loan is the difference between a cash flowing asset?

A drop in rates in 1 year is very bullish. No one knows, but conventional wisdom is higher rates for next 1-2 years. Anything outside of that is pure guess work

---

My household income can pay an extra 400 a month in interest payments for a year or two until refi (assuming rates go down).

I am just tired of renting and my rent is damn near a mortgage payment now.

quote:

---

Ahh personal residence. I think we all have a number per month we can afford for housing. That number is what is, I wouldn't spend more over that number regarding rates. I think with rates going up, you should be looking for home prices to level off and find a house that is valued in a good spot. I'd buy if there's value, it fits your budget, and you like the house. I just wouldn't bet on rates coming down anytime soon. I would take the stance that rates will be at >5% forever

---

I appreciate the input.

quote:

---

Safe to assume they drop when housing drops? How would one estimate a good buy with that unknown?

---

I have never seen RENT prices drop. There is limited inventory. I just bought a new rental last night...nothing to brag about...it was a 2-2 new mobile home on a nice acre lot in Oxford. Rents for $1,000/month. Bought cash for $112. Lease already signed through July 2023 from tenants who have been there three years. They cannot afford to buy a home in the market so they stay.

I just spoke to another tenant of mine an hour ago and she wants to sign a three-year lease extension (seeing if she could lock her price in if she did it). Housing scarcity, high rates, high building supplies, delays everywhere will keep the prices set for rentals. The housing market will cool a smidge due to reduced demand because people cannot afford the $300k home with a 7% interest like they could a 3% a year ago.

Anyone have any feel for commercial property? After 8+ years of looking in a certain area for land to build out a commercial business on there have been 5 tracts come up for sale within a mile of each other in the last 3 weeks, (4 different owners) it's still hard to believe. These are 10+ acre tracts and would be big enough for what we want to do but I also feel they are over priced at the current asking prices, fomo is weighing on me though. I would be paying cash for the land then forming a LLC for loans to build out the businesses. The businesses would be associated with disposable income so that scares me, the interest rate increases are worrying me with the loans. I'm 99% sure the businesses will cash flow month to month but writing that big check up front in the current climate scares crap out of me. It's life changing money if things go south.