BUILD-TO-RENT WILL INCREASE
RISING RENTS WILL OFFSET RATE HIKES
EXPANSION OF SECTION 8 SHORT SALES, AND REOS
Rate increases will slow, prices will come down some, and professional investors will start getting antsy in the spring. Jammed up markets will start moving. Prices of investment properties will come down a bit, but the interest rates will continue to be a problem for profitability for a while longer. I wouldn’t worry too much about the long-term profitability of rental housing, though. Even with prices adjusting downwards, higher payments have made it HARDER for first-time buyers to get onto the first rung of the property ladder. My advice - raise capital or liquidate. Don’t worry about taking a small price hit if you’re selling. Fill your coffers, deal season is coming! And rising rents will offset this year’s rate hikes.
I expect it to be an Investor’s Market in 2023. It is a perfect time to invest in the Section 8 Program. HUD recently released an additional 200,000 Section 8 vouchers and granted public housing authorities (PHAs) discretion in distributing landlord incentives. PHAs can pay signing bonuses, security deposits, damages, vacancies, renter’s insurance, market-rate rents, and application fees. The war room tells me that foreclosures, short sales, REOs, tax liens, value add, and turnkey properties will be readily available. I am preparing by evaluating deals through my cash flow analysis software. I plan to invest and grow my real estate portfolio.
In 2023, I foresee an increase all across the country in Build-to-Rent, which mimics the structure of multifamily financially and physically. There is a need for long- term housing, however; most don’t want the long-term commitment of a 30-year mortgage. I believe that investors should switch gears and focus primarily on the demographic of people who are looking for long-term housing arrangements without the commitment. Build-to-Rent models answer the call and fulfill the need. Moving forward, I will focus on Build-to- Rent models and educating investors and families through my non-profit, The Tradition First Foundation. As an organization, we value self-sustainability, which includes preparations for incoming turbulence in the housing market.
IT IS A PERFECT TIME TO INVEST IN THE SECTION 8 PROGRAM.
BUILD-TO-RENT MODELS ANSWER THE CALL AND FULFILL THE NEED.
JAMMED UP MARKETS WILL START MOVING.
Dr. Michael Threatt Principal and CEO Elevate Housing Solutions, LLC Connect with Dr. Threatt
Terrie Schauer, PhD Real Estate Investor Author of Mindful Landlord Read Terrie’s Book
K’Dia Brooks Real Estate Investor Author of Fundamentals of Financing Read K’Dia’s Book
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