Significant equity sitting on the sidelines

[Account Closed]

Our portfolio has tripled in value since 2016.  We are sitting at around 5.7m in equity.  We have 10 year balloons, renewable once in LLCs at some really nice rates.  Ranging from 3.9%-5%.  On one hand, we would like to purchase a few more properties, but on the other hand, I was expecting the rates to go up, not down.  I have a feeling that prices will continue to inflate as the rates come down in November and beyond (Sept. has already been priced in).

For sh*ts and giggles, I put in an offer, all cash for $800k on a com. property in Mamaroneck, and it was declined (it was priced too high when compared to comps).  We also waived everything but structural. 

It's like a waiting game and with the rates going down, we cannot even keep the funds in treasuries to earn some decent overnight funds.

We are risk adverse, so we are trying to over leverage, but it would be nice to have a new rehab project.  Those are what I like the most.  In 2019, we purchased a four story building for 39k (it was listed for $250k).  It's now worth around $750k-$800k.  It's not our most profitable, but it was enjoyable to rebuild a 150 year old brick building.

It seems these are few and far between..  The worse they are, the more interested I am.  Assuming they are in the correct area.  There is a lot with a garage in a res. area.  The owner purchased 30 years ago for $125k.  He listed it for $280k, and he's not budging.  Even if we placed a four-plex MFC, it's going to be difficult.

Market still sucks for the money on the sidelines.