Accidental Landlords Are Your Path for Getting Started

Accidental Landlords Are Your Path for Getting Started

Investor ยท Fort Lauderdale, FL ยท Member since 2013 ยท 920 posts ยท 607 votes

"๐ด๐‘๐‘๐‘–๐‘‘๐‘’๐‘›๐‘ก๐‘Ž๐‘™ ๐‘™๐‘Ž๐‘›๐‘‘๐‘™๐‘œ๐‘Ÿ๐‘‘๐‘  โ„Ž๐‘Ž๐‘ฃ๐‘’ ๐‘๐‘’๐‘’๐‘› ๐‘กโ„Ž๐‘’ ๐‘š๐‘Ž๐‘–๐‘› ๐‘‘๐‘Ÿ๐‘–๐‘ฃ๐‘’๐‘Ÿ ๐‘œ๐‘“ ๐‘”๐‘Ÿ๐‘œ๐‘ค๐‘กโ„Ž ๐‘“๐‘œ๐‘Ÿ ๐‘œ๐‘ข๐‘Ÿ ๐‘š๐‘Ž๐‘›๐‘Ž๐‘”๐‘’๐‘š๐‘’๐‘›๐‘ก ๐‘๐‘œ๐‘Ÿ๐‘ก๐‘“๐‘œ๐‘™๐‘–๐‘œ."

โ€” Daniel Morgan, Managing Principal, Marterra Brokerage, Property Management & Real Estate Investment

I've been saying this for over two years.
The "๐€๐œ๐œ๐ข๐๐ž๐ง๐ญ๐š๐ฅ ๐‹๐š๐ง๐๐ฅ๐จ๐ซ๐" isn't a theory. It's becoming one of the biggest trends in residential real estate.
For investors, this isn't just another statistic. It's a signal that the opportunity is shifting. 
The question is whether your investing strategy is shifting with it.

If you're new and trying to get started, these homeowners who haven't been able to sell should be on your radar.
Many newer investors overlook this trend because they're still waiting for foreclosures or motivated sellers. The Accidental Landlord may become one of the biggest sources of creative deals over the next few years.

What are you seeing in your market?

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Stuart UdisPro Member
Attorney ยท Philadelphia ยท Member since 2018 ยท 2k+ posts ยท 3k+ votes
2mo

I wouldn't be surprised if the success rate of accidental landlords exceeds that of the new wave of investors chasing cash flow with flawed underwriting in C/D neighborhoods. The accidental landlord likely made their purchase for reasons unrelated to investing, but they still subconsciously benefited from fundamentals that many investors overlook. They bought in an area they actually wanted to live therefore likely purchased a property with higher barriers to entry, and often ended up owning better quality real estate.

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  • Clare PitcherBusiness Member
    Property Manager ยท Milwaukee, WI ยท Member since 2024 ยท 162 posts ยท 97 votes
    2mo

    We have seen a significant jump in accidental landlords here in the Milwaukee market!

    Welcome Home Milwaukee4.4454 Reviews
  • Investor ยท Fort Lauderdale, FL ยท Member since 2013 ยท 920 posts ยท 607 votes
    2mo

    @Clare Pitcher  I'm somewhat surprised to read that.  Milwaukee, at least statistically, appears to be s solid seller's market.  Is the tide turning?

    • Clare PitcherBusiness Member
      Property Manager ยท Milwaukee, WI ยท Member since 2024 ยท 162 posts ยท 97 votes
      2mo
      Quote from @Michael Carbonare:

      @Clare Pitcher  I'm somewhat surprised to read that.  Milwaukee, at least statistically, appears to be s solid seller's market.  Is the tide turning?


       We are still in a seller's market overall, however, there are owners moving who have amazing interest rates they do not want to let go of so they have decided to rent. We also have owners moving for either work, military, school, etc and may want to come back one day. 

      Welcome Home Milwaukee4.4454 Reviews
  • Rental Property Investor ยท San Francisco Bay Area ยท Member since 2022 ยท 1k+ posts ยท 1k+ votes
    2mo

     I know several people in the Bay Area who bought in the 1990s or 2008 and are now renting out the first property and living in the second property (either locally or moved away to a lower cost area in California). If they didn't panic sell during the 2008 era (due to job loss, underwater on the loan or other devastating financial reasons) and held on, they are doing very well and have hundreds of thousands or over a million in equity. One person in that group decided to scale and bought more rentals in California when it was more affordable. 

    I also rented out my primary home when I moved. I didn't want to give up the reasonable purchase price/equity and the low interest rate. 

    I see the househacking done more now with recent buyers who also want  be real estate investors here. I think househacking and accidental landlord can be great strategies now with challenging market in the U.S.

  • Stuart UdisPro Member
    Attorney ยท Philadelphia ยท Member since 2018 ยท 2k+ posts ยท 3k+ votes
    2mo

    I wouldn't be surprised if the success rate of accidental landlords exceeds that of the new wave of investors chasing cash flow with flawed underwriting in C/D neighborhoods. The accidental landlord likely made their purchase for reasons unrelated to investing, but they still subconsciously benefited from fundamentals that many investors overlook. They bought in an area they actually wanted to live therefore likely purchased a property with higher barriers to entry, and often ended up owning better quality real estate.

  • Investor ยท Fort Lauderdale, FL ยท Member since 2013 ยท 920 posts ยท 607 votes
    2mo

    @Stuart Udis  100%.  I finding these are typically good homes in desirable neighborhoods.  Definitely not fixers in rough areas.

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