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Jack B.
  • Rental Property Investor
  • Seattle, WA
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Rates too high to buy more houses

Jack B.
  • Rental Property Investor
  • Seattle, WA
Posted

I bought four more houses last year. I was going to buy 2 more this year but 6% rates for an investment property make that cash flow negative and not worth it.

That said, what to do with cash on hand? 1.2 mil liquid. Paying off houses that are 3.65% rates makes no sense. 

I usually lose money in the stock market so far. Cash is losing money to inflation. So what to do with the money? Buy paid off houses out of state for 4K a month cash flow after all expenses?

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

Just increase your down payments to offset higher payments. I remember the 1st time we had 6% rates and thinking it was impossible for rates to ever go lower. Welcome back to whats almost a normal interest rate environment. I say almost since normal will be 7%ish. 

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