If you're like us, you are a long term value investor, particularly focused on residential real estate -- single family (1-4 units) or multifamily (5+ units).
There's a saying that we love which we think rings very true among the best rental property investors:
Marry the property and date the rate.
What does that mean?
You're looking for a great long term investment. Once you buy this property, you have no intention to sell, at least for the next 30 or more years. Maybe your plan is to have your family inherit your portfolio.
You understand that the best strategy for accumulating wealth in real estate is to buy and wait. Don't worry about the current price and if it will go down in the near term -- just to buy and hold for a very long time.
💸 📈 rents will increase 🏠 📈 the value of your property will increase
Now getting to the concept of dating the rate... This current interest rate environment is not attractive and obviously so, right?
We're looking at 7% to 8% DSCR loan interest rates and nobody gets super excited about those rates.
But if you find a great deal deal and you can add to your portfolio that you're going to hold on to and build over the long term, you marry that property and date the rate. Put a ring on it!
You can refi out of that rate next year, the year after, whenever interest rates come down. Opportunistically, you can optimize the cash flow of your portfolio by refinancing and maybe even pull some cash out to buy more properties...
So marry the property, date the rate. It a great strategy to think about as you're considering whether or not it makes sense to continue buying in this elevated interest rate environment.
Whether you're looking to buy your first rental property or your 100th rental property, OfferMarket is dedicated to helping BRRR and turnkey rental investors build wealth.