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what are your average weekly hours?
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Any Property Management recs in Seattle area? :(
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Oh you still think rates are dropping. My index fund thanks you. The fed has a very simple job. Stable prices, maximum employment. He’s achieving both at the current rates. Don’t fix something that isn’t broken. If he drops rates into a healthy economy demand and prices will shoot up. It hurts everyone. He literally can’t drop rates. He would need a lot of uncertainty in markets to drop rates without causing inflation. High unemployment could trigger it, a bigger war, another Covid. It could be an unforeseen catalyst. Higher for longer is the right approach. He’s following the data. He was a little late raising rates, but overall he’s doing a good job unless you’re a realtor or lender. Buying property hasn’t made sense for awhile, so he’s driven the investor buying frenzy out of the market. Inventory will slowly recover on the current course.
If you can at least break even you can hold, get into profit in the future. If you’re upside down on monthly expenses I’d flip it and get out. I wouldn’t plan on any timeline for a rate cut to get into profit. You don’t want to pay for someone else to live there. If the job market further deteriorates it can put you in a bad position. The number 1 rule in investing is don’t risk it all, manage the risk. It might take a couple flips to be able to hold a long term rental. You should also be using a rental analysis to see what your returns are. Weigh those returns against something like an S&P 500 index fund returning 20%+ this year. I own both.
Mentor
I believe the current sentiment is yes. Housing sales are suppressed due to high interest rates pricing most buyers out of the market. Additionally, this also applies to sellers, as sellers are usually soon to be buyers (you need to live somewhere). So people are staying in their homes longer, because they don’t have a place to go after they sell.
In theory if the rates drop to let’s say 5%, I would expect sellers starting to feel comfortable selling their homes again, and more buyers will enter the market to scoop up those homes.
Mentor
For investors that bought up homes during the pandemic, I would expect most to refi unless there are serious problems with the property, or if the property was a flip.
Personally, I’m looking to refi my properties to lower expenses and drive up profit margin. No looking to sell at all.
Home prices are going to remain flat or rise in the next decade. More and more people are moving here and builders are not building. This will change based on new opportunities, but given the information today this is the economic read.