Over the past two years, real estate has been on fire! That has been both good and bad.
On the positive side, higher property values mean more equity that can be tapped. High inflation has also driven up rents, churning higher profits on properties that had been purchased in prior years.
The down side, well, thats been that prices have been so high, that it becomes difficult to find a property that will be profitable. Between higher prices, higher interest rates, and up until recently ending up in bidding wars on many properties, finding something that works as a good long term or even short term rental has been hard.
Another thought has been that the rise in home costs, has gone up so fast, I have concerns that this is unsustainable and could lead to a crash in the residential housing market. Over the past year, this concern has driven me to look at private placements or syndications. I had come into this from reading about them in books, on web sites like biggerpockets.com, and heard about them from other investors. Over the past year, with all the things going on in my personal life, and an overly hot real estate market, I decided to dip my toe into investing in a few large apartment syndications. All are still in the states that I have already been investing, but this being the first year, I’ll post an update at a later date as to how well they all went. I suspect that these won’t be effected as much by a down real estate market, but yes, it’s all speculation and time will tell.
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