Thank you for your response!
It is overwhelming to see the genuine "thanks".
I am doing another flip on another property that I bought at auction. I seem to keep the contractors busy. The opportunities are there, but only a few really result in good opportunity. The buy and hold and rent are good choices right now. Returns are generally around 8-11% after expenses assuming no appreciation. Keep the lenders out and pay cash. Get the lenders return and the extra rent profit. No leverage and pretty safe when buying a modest price range in good areas. Value increases will return someday when the lenders are able to loosen up the lending underwriting.
A private banker this morning said he thought that at our all-time high 4 years ago that 74% + of our US population was lendable, his estimates today are closer to under 25%. I would have guessed 30%. That’s the primary reason that the real estate market is soft and will likely stay soft until 40-45%+ % can qualify for a home mortgage. This will keep the rental market solid for the next few years as it is quite an obstacle for many would be borrowers.
I appreciate being asked to help. Have a great week.
Steve J
Call me with all of your questions! Call or text me @ 303-898-9000 or click here to email me!
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