Rent Going Up? One Company’s Algorithm Could Be Why.

One visionary saw this coming 15 years ago...

 

Nice

You can always depend on somebody getting a thread back on track.

 

3 houses. Drove a 2004 Tacoma until it absolutely was dead last year. I do usually keep a vintage car, for play, paid in cash, because they hold value and aren't expensive (or at least they weren't, they are in inflation era, which again, keeps value). GOOD LUCK

 

Blackrock buying all the houses + high interest rates = nobody wants to build = GOOD LUCK

 

I agree with this. As a landlord with a couple of modest townhouses. I have great long term tenants, they have been with me for awhile. I’ve only raised the rents by a few hundred bucks in the past few years where I could have gotten much more rents with new tenants. I fix things ASAP too because I would want to live in a safe and functional place. The average landlords like you and I are just trying to survive too.

 

It's never too late for a comeback.


Forgot the guy was a Karate expert too. He could capitalize on the popularity of Cobra Kai.

 

People who are making over a 100k tend to max out their multiple credit cards because of overspending and that often leads to poor credit scores.

 

I’m really tired of single family homes as investments, too much work, risks for little rewards. I’m learning about multi-family(apartments) like what Grant Cardone and other gurus are advocating. What do you know or think about them?

 

They seem good from what I know. I'd do that before trying Airbnb. I think the current thought is to buy in middle America where the cap rates are favorable?

Repairs seem scary. Foundation repair or roof replacement on a commercial property like that - yikes.

I also don't LOVE the idea of maintaining rental property somewhere like NC where the labor doesn't seem cheap.

I've always felt buying in slum areas/properties was the TRUE way to add additional income.

My personal strategy is just to speculate on location. I want homes in areas I think might improve in value in the near future, so I can sell when the market is hot if needed (10yr window). EADO & College Station for example both hit pretty nice - increased in value. Basically momentum/swing trading houses (as fallback plan).

 

I tried AirB&B, was an absolute nightmare, tethered to my phone 24/7. One guest wanted me to come over at 2am to kill a spider. You’re right about the cap rates, crucial to the deal. I’m learning how to do underwriting on multi family now, totally a different beast from single family homes. The spikes in the interest rates killed a lot of deals.

I might want to look into mid-term rentals like from 1-6 months( or longer), they called it corporate leasing, I want to generate some cash flow while I’m learning about multi family. Sounds like you have a good strategy. Real estate investing is so diverse and multi faceted, gotta have the right specialized knowledge, experience, networks and capitals.

Good luck and let me know how it turns out.

 

You guys are over here talking about rental houses. This article is more about apartments owned by huge corporations. The rental increases have been astronomical. People have to have a place to live. Let me give you an example. I was hanging out with a friend a few months ago. He was talking about his lease renewal. His apartment was going up by over 300 a month. He went online and looked at his same apartment Floorplan, 1st floor ,etc. They wanted 800 more for a new tenant. Okay you're right. He could move. The problem is this is all done by computer algorithm now. So every single place he looked for that was a similar type place was the same 800 more. There is no competition. If every apartment complex raises the prices then people are stuck. They do not compete with each other. I understand if taxes, salaries, and costs go up, but they do not go up by 300-800 dollars a month per unit.