I’m excited to share some exclusive behind-the-scenes photos of my latest project! Make sure to subscribe so you can see the stunning after photos soon. This renovation will primarily focus on cosmetic improvements, with necessary updates to major systems like HVAC and plumbing. Thanks to my incredibly fast contractor, this property will be ready in no time.
Our goal is to have it rented out before the school year begins, as it becomes more challenging to find tenants once classes are in session. While this property follows the classic BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat), I always have multiple exit strategies. If renting doesn’t pan out, I have several other options to ensure success. Stay tuned for more updates!
The U.S. economy is expected to slow down in the coming months, although it is not currently showing signs of a recession. The Conference Board’s leading economic index fell slightly in June by 0.2%, following a 0.4% drop in May. Over the past six months, the index has declined by 1.9%. Contributing factors include gloomy consumer expectations, weak new orders, negative interest rate spreads, and an increase in unemployment claims. Despite these declines, the long-term growth of the index has become less negative, suggesting a slow recovery. Economic activity is predicted to lose momentum, with consumer spending cooling and GDP growth forecasted to drop to around 1% in Q3. The Federal Reserve is anticipated to lower interest rates later this year, with the slowing economy and labor market aligning with its goals. The economic outlook remains uncertain due to upcoming election-related uncertainties, domestic policies, geopolitical conflicts, and inflation concerns. President Biden faces a tough election against former President Trump, whose proposed economic agenda includes increased tariffs, tax cuts, and deportation policies that could potentially benefit corporate America and the wealthy.
Do you check your cameras at your short term rentals?
We want to know! CLICK HERE to tell us your thoughts on monitoring your cameras. We’ll share the results next week in the newsletter and let you know our thoughts on it. In the meantime, enjoy this video of a little friend that came to visit our guests in the middle of the night.
Conventional: 7.125%
VA: 6.125%
FHA: 6.125%
DSCR: 7.375%
If you’re in the market for a loan and need assistance, our team at The One Brokerage is here to help. Visit our website here to explore our loan options and find the right financing solution for your real estate goals and email us at intake@theonebrokerage.com to speak to one of our loan officers.
The U.S. housing market is experiencing a “mortgage rate lock-in effect,” where homeowners are reluctant to sell their homes due to the high mortgage rates they would face on a new property compared to their current low-interest rates. A report by U.S. News & World Report highlights that this effect varies by state, depending on the “lock-in gap”—the difference between existing mortgage rates and current rates for new mortgages. Nationally, the average lock-in gap is 3.15 percentage points, with existing mortgage rates at 4.1% and new mortgages averaging 7.25%. Colorado has the largest lock-in gap at 3.45 percentage points, causing significant monthly payment increases for homeowners looking to move. Conversely, Texas has the narrowest gap at 2.55 percentage points. States with higher housing costs, like Hawaii and California, would see the highest monthly payment spikes if homeowners sold and bought new homes at current rates. Despite these challenges, some homeowners may mitigate the impact with substantial equity and larger down payments, potentially eliminating mortgage insurance on conventional loans. Real estate professionals advise consulting mortgage and financial advisors before making decisions about selling or staying put.
We excited to share the story of a sale of a 4-plex in the Greater Sacramento area, a journey marked by resilience and collaboration. This transaction was fraught with numerous challenges that tested the tenacity of everyone involved.
The first buyer backed out, overwhelmed by the amount of work the property required. However, we quickly found a second buyer, though this too came with its own set of hurdles. The low rental income initially raised doubts, and finding suitable insurance quotes proved difficult due to past claims. Financing was another obstacle, but through perseverance and teamwork, we managed to navigate these issues. That’s why it’s important to have someone on your team who has the experience to get you to the closing table whether you’re a buyer or seller.
If you’re interested in buying or selling with the David Greene Team, reach out to info@davidgreene24.com. We’d love to help you!
