Market Trends & Data

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Ran Iarovich
  • Real Estate Agent
  • Washington
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Interest rates have just increased to 7%. How have your real estate plans change?

Ran Iarovich
  • Real Estate Agent
  • Washington
Posted May 25 2023, 07:53

With recent issues with the debt ceiling and summer market coming up. We've been through many fluctuations since the start of 2022. To the Bigger Pocket community - are you doing anything different this year due to the recent rate hikes? 

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Replied May 25 2023, 08:33
Quote from @Ran Iarovich:

With recent issues with the debt ceiling and summer market coming up. We've been through many fluctuations since the start of 2022. To the Bigger Pocket community - are you doing anything different this year due to the recent rate hikes? 


 Yes , buy with 5% rate.

I guess if one is waiting until 2024 , it would be too late, home market is already rallying like there is no tomorrow 

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied May 25 2023, 16:31

Holding loans with extremely low interest rates. Via subject to or owner finance.

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Dave Skow
  • Lender
  • Seattle, WA
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Dave Skow
  • Lender
  • Seattle, WA
Replied May 25 2023, 16:54

@Ran Iarovich- thanks ...fyi - in additon to the rates  continuing to climb to the  7% range  - the  loan fees for rental  properties  that  most lenders  are  charging  are  as  high as they have  ever been ...trying to get a  rental proerty loan with a loan fee ( points ) under  3%  is a challenge at times 

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Bert Chen
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Bert Chen
Replied May 25 2023, 17:10
Quote from @Ran Iarovich:

With recent issues with the debt ceiling and summer market coming up. We've been through many fluctuations since the start of 2022. To the Bigger Pocket community - are you doing anything different this year due to the recent rate hikes? 


Personally I believe that there is a opportunity in every market. Rates 📈 home prices 📉. You just have to be consistent and keep a eye out. Then once interest rates lowers and the numbers make sense, refinance!

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Jake Zhiltsov
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Jake Zhiltsov
Replied May 30 2023, 15:37

Ran - with interest rates up as they are, try running your numbers with a higher down payment, which could improve returns but will tie up more cash. 

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Michael Bennett
  • Real Estate Agent
  • Phoenix, AZ
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Michael Bennett
  • Real Estate Agent
  • Phoenix, AZ
Replied May 30 2023, 15:50

I think it makes a lot of sense for investors to hold a real estate license. I saved $24,000 in commission last summer when we sold a duplex, and am set to make $17,000 in commission on a property we will close on later this week. That $17k is going straight to a 3 point permanent rate buy down putting us in the mid 5s.

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Chris Seveney#4 All Forums Contributor
  • Investor
  • Northern Virginia
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Chris Seveney#4 All Forums Contributor
  • Investor
  • Northern Virginia
Replied May 30 2023, 17:24

@Ran Iarovich

We invest in notes, so higher interest rates are better for us

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Michael S.
  • Huntsville, AL
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Michael S.
  • Huntsville, AL
Replied May 30 2023, 17:45

@Ran Iarovich - to answer your question, no.  We are doing everything exactly the same - look at the deal, run the numbers, and buy if it works as either a LTR, MTR or flip.  Now, we are finding  more deals in 2023 that work as flips than LTRs, so I guess that would be the only difference.  

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Eric Miller
  • Lender
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Eric Miller
  • Lender
Replied May 31 2023, 06:55

The did come down about .5% yesterday. 

Lender Georgia (#2289249), South Carolina (#1504195), Virginia (#MC-7434), Florida (#MBR4965), and North Carolina(NC) (#B-208638 )

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Bonnie Low#1 Medium-Term Rentals Contributor
  • Investor
  • Cottonwood, CA
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Bonnie Low#1 Medium-Term Rentals Contributor
  • Investor
  • Cottonwood, CA
Replied May 31 2023, 07:00

Just being more conservative in our underwriting. The numbers have to work. We don't buy assuming rates are going to come back down. If the deal doesn't cash flow at current rates, we don't buy. 

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Luke Stewart
  • Investor
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Luke Stewart
  • Investor
Replied Jun 14 2023, 08:14
Quote from @Michael Bennett:

I think it makes a lot of sense for investors to hold a real estate license. I saved $24,000 in commission last summer when we sold a duplex, and am set to make $17,000 in commission on a property we will close on later this week. That $17k is going straight to a 3 point permanent rate buy down putting us in the mid 5s.


This works for some but not for all, the expertise my agent has on the Denver market saves me time and money. Worth every penny and I wouldn't do it any other way. That being said I also have no interest in doing the agent side of it. If I did I might have a different take. 

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Luke Stewart
  • Investor
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Luke Stewart
  • Investor
Replied Jun 14 2023, 08:14
Quote from @Michael Bennett:

I think it makes a lot of sense for investors to hold a real estate license. I saved $24,000 in commission last summer when we sold a duplex, and am set to make $17,000 in commission on a property we will close on later this week. That $17k is going straight to a 3 point permanent rate buy down putting us in the mid 5s.

This works for some but not for all, the expertise my agent has on the Denver market saves me time and money. Worth every penny and I wouldn't do it any other way. That being said I also have no interest in doing the agent side of it. If I did I might have a different take. 

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Luke Stewart
  • Investor
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Luke Stewart
  • Investor
Replied Jun 14 2023, 08:16

I think with changing rates and an unclear trajectory the key is to be safe. The one change I have made is that I won't touch anything that doesn't cash flow at LTR rates. Even if the plan is MTR or STR, then it needs to break even at LTR rates.. nice to have the security blanket of LTR rates covering expenses in case of worse case scenarios.

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Robert Kurka
  • Real Estate Agent
  • Tacoma, WA
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Robert Kurka
  • Real Estate Agent
  • Tacoma, WA
Replied Jun 23 2023, 10:04
Quote from @Ran Iarovich:

With recent issues with the debt ceiling and summer market coming up. We've been through many fluctuations since the start of 2022. To the Bigger Pocket community - are you doing anything different this year due to the recent rate hikes? 



Hello, my name is Robert Kurka,  I possess exceptional skills in analyzing deals and identifying lucrative projects, setting me apart from others in the field. One of my key strengths lies in my ability to find cash-flowing rentals by employing innovative strategies involving Short-Term Rentals (STRs) and Medium-Term Rentals (MTRs). These approaches prove particularly effective in overcoming challenges posed by high-interest rates. 

Without implementing short-term and long-term rentals is very hard to cash flow right now.