Overcoming Inflation
We have several clients that we have worked with in the past ( on average 2-3yrs ago ) and when we were selling them houses the simple numbers looked like this:
$62,900 sale price with monthly rent of $850-$900. This was what we were able to provide back then. Then came the hedge funds and pricing/competition rose drastically. Even though the funds have stopped buying, homes we get now that rent for $850-$900 are sold for about $75k-$80k on average. The cash flow is still good but these older clients are having a hard time grasping that pricing and values have risen that much, it keeps them from buying again.
Are there any other property providers who have experienced this same issue? I try to let them know that prices are still considerably low compared to what these homes were selling to circa 2008. Just curious.
