Rental Property Investor · Norfolk, VA · Member since 2019 · 23 posts · 7 votes
The real estate market has been all over the place in the last few years, and it forces us to adapt our strategies in how we invest. I invest in long term buy and holds, and with current interest rates tightening our cash flow, I'm curious to how everyone is adapting. Lately, I have been acquiring properties that need moderate rehab, fixing them up with my own funds, and renting them out. Instead of refinancing right away and pulling cash out, I am waiting for rates to come back down in order for the cash flow to make sense. I'm pretty much just sitting on the built in equity and cash flowing decently until I choose to refinance. The only downsides are needing more capital up front and keeping it in the deal for longer, but it works if I don't need it immediately and have it available. How are you guys doing it?
The real estate market has been all over the place in the last few years, and it forces us to adapt our strategies in how we invest. I invest in long term buy and holds, and with current interest rates tightening our cash flow, I'm curious to how everyone is adapting. Lately, I have been acquiring properties that need moderate rehab, fixing them up with my own funds, and renting them out. Instead of refinancing right away and pulling cash out, I am waiting for rates to come back down in order for the cash flow to make sense. I'm pretty much just sitting on the built in equity and cash flowing decently until I choose to refinance. The only downsides are needing more capital up front and keeping it in the deal for longer, but it works if I don't need it immediately and have it available. How are you guys doing it?
Chris,
It sounds like you've developed a solid approach to navigating the current real estate market fluctuations. Your strategy of investing in properties for long-term hold and waiting for more favorable refinancing rates is prudent, especially in an unpredictable market.
Like you, many investors are exploring alternative methods to maintain and expand their portfolios. One approach gaining traction is utilizing unsecured term loans. These loans can be a flexible tool for acquiring additional funds without tying up your assets. They offer the advantage of not requiring collateral, which can be beneficial for investors looking to keep their existing properties unencumbered. This could be an option worth considering, especially when you need more capital upfront for your projects.
It's always essential to weigh the pros and cons of any financial product, but in scenarios where immediate cash is required without the desire to leverage existing assets, unsecured term loans might provide that necessary flexibility.