How to get good cash flow in this market?

Question

Hello, currently the mortgage rates are 7% or more which is driving purchase cost higher and rent higher. Probably this is peak of interest rate, I have seen. How to make sure I get tenant faster and good cash flow? I cannot rehab a property as I'm busy with my day job. Any other suggestions?

Eliott Elias · Answer

Owner finance with a low interest-rate.

Joseph Beilke · Answer

As for your 7% statement, I disagree. I think mortgage rates will make it over 8.5 possibly even reach 10. This is bad very news for Realtors, sellers, buyers, lenders, and everyone that does any type of business in real estate. The Fed has said and the news is quietly even if reporting, that other than more rate hikes or larger and more banks failing, the last resort for inflation is 10% unemployment which has to happen organically with some help from the Government with more regulation and taxes. Business will down size and lay people off to cover the cost of doing business. That scenario of more banks failing and unemployment with tank prices due to foreclosures inventory increasing.

So what you're looking for now is a seller that has a turn key property and has to sell for what ever reason. This seller is willing to drop the price to get it sold and the longer it sits the more likely it will have a substantial drop in price. Now this is key, you need to be looking in a market that few other investors are looking at. Cash heavy and high income earning investors are looking for assets that they can depreciate to off set there income tax. This is where you have to swift with your numbers and evaluations on a property. Be ready to make fast offers and have your ducks in a row so another investor doesn't come in a pick it up first.

Lastly, Fast tenant shouldn't be your goal. A good well qualified tenant is what you want, so screen them closely and equally and you will find a good one fairly quickly.

Good luck with your hunt!

How to get good cash flow in this market?

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