How are you tracking your market inventory levels?

Question

I've been investing for a long time and since 2001 I have been tracking market inventory levels to know what, when and why I should buy or sell. A lot of this stems from my background as a real estate appraiser and my love of numbers. Why is this important? The numbers are why I stopped buying in 2005 and started selling in 2006. The numbers are why I started buying again in 2010. The numbers are why I stopped buying again at the beginning of March 2020. Attached is a screenshot of the numbers I track. What numbers are you tracking?

Luke Weber · Answer

Data wasn't available for what could have happened, we paused out of an abundance of safety to see what would happen. After experiencing the 07 crash and losing alot there, I didn't want to put what I had at risk again. Oddily enough, like many other markets, we kept increasing and inventory has stayed low (less than 2 months available). We've been buying for the past 4 months or so again and been doing well, a few tweaks, not buying properties with renters in place as much, less rehab is more desirable for a quicker in and out, less leveraged on our purchases and using more of our own cash. If you are going to play, just make sure you play smart!

Steve Hiltabiddle · Answer

@Luke Weber

Enjoyed your Flipping book. I see you have a few more columns in what you shared (SFR under $300k). You don't show it but what did your data show in the beginning of March that made you pause your purchases? How have you handled the current market during Covid (in my markets it's been a strong sellers market, not sure how LV is).

Thanks,

Steve

How are you tracking your market inventory levels?

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