Investment strategy in current market
I have been searching for my first out of state LTR in a A/B class neighborhood with good schools. Looking for deals where I at least break even on the cash flow if not positive. So far looked at Fort Worth, other Dallas areas, Houston, Atlanta and Raleigh because I have friends/relatives there. So I'm kind of familiar with these places. I'm looking at homes in the range of 250-300k. Almost all of the prospective homes I have seen have negative cash flow for the first 4-5 years and that too with more than 50% down
Should I play the waiting wait until interest rates get more favorable for my strategy? Should I change my strategy? I feel like investing money in the most basic of index funds would give me better returns within a couple of years without all the hassles of maintaining a house. Thoughts?
Most Popular Reply
Hey Aditya - you're seeing what everyone else is seeing my friend.
Long term rentals are not likely to cashflow with today's rates, rents, and prices.
We are having success with from a positive cashflow perspective is rent by the room through platforms like padsplit here in Atlanta. It's the only strategy I am seeing right now where 12%+ CoC is possible.
Our team has done 50 or so deals like this in the Atlanta market this year and over 200 over the past 3-4 years. Feel free to reach out if you have any questions!