Updated 5 months ago on . Most recent reply
Borrow at 7.5%, earn at 5.5%?
That's what the current situation is. Rates are at 7.5%, cap rates in my area 5.5%.
Sure you get principal paydown but that's fairly low for the first ten years.
Only thing that can make up for it is appreciation, but I have a hard time penciling in more than 3%.
Seems the only good deals right now are:
a) value add
b) all cash or significant money down.
Any thoughts?