What To Do In Highly Appreciated Market?
My plan has been to accumulate SFRs for the future monthly income once paid off. I have two SFRs that have FMVs about 65%. Finding more houses in the current market is almost impossible as everything is priced way above any possible cash flow.
In my rookie judgement , it seems I should take my appreciation and 1031 into more properties. Problem is, no properties I have seen come close to positive cash flow. I have been looking for multi's and even good commercial properties but none come close, even at 20% down.
What to do? Is there a way to take my equity and park it somewhere until prices stabilize? The 45 day 1031 window just seems too short to risk selling my houses until I have found another property.
:-?
Where are you located?
Yeah, a highly appreciated market can create these problems. On the one hand you'd like to sell your existing buildings which would sell for more than you think they are worth, before the bubble bursts. On the other hand where would you put the money?
Think about commercial property or adjacent, less inflated markets.
Quote:My plan has been to accumulate SFRs for the future monthly income once paid off. I have two SFRs that have FMVs about 65%. Finding more houses in the current market is almost impossible as everything is priced way above any possible cash flow.If your plan is working now, why break it?
Just because your equity is around 65% (is this what you are trying to say?) does not mean you need to sell. If your tenants have been buying your property all along, why change anything unless you have some compelling reason to sell?
Interest rates are on the way up,if you can wait more property will become www.available.I feel