Wait – isn’t housing unaffordable right now? Yes, and no. It depends on the how much debt you plan to carry. If we were looking at suburban single family homes with conventional 30-year mortgages, we’d be challenged to find good buys with numbers that made sense to turn a profit. We’re swimming upstream in this case, however, and it works in our favor. 

We’re starting with luxury units in urban areas, keeping our debt low with cash investment, and buying out our loans within 2-3 years. The shorter the leveraged period, the greater the savings on debt service and therefore greater profit upon liquidation.

We’re just before the crest of the real estate market. Dire shortages in inventory prompted a glut of new construction that was held up by skyrocketing supply costs and a limited labor force. New inventory is finally coming online, but buyers are waiting for rate improvements. There are deals to be made in new construction projects; discounts from developers and investor incentives in the form upgrades and amenities.

There’s also a high volume of established luxury communities that have seen slow sales due to both  higher rates and the competition from new developments we just mentioned. There are homes sitting in La Quinta and  Park City that are slowly reducing their asking prices. It’s about taking the time to look for the buys and find the perfect mix of value and income potential. We’ll keep you posted!