The Government mandates at a local, state, and federal level makes it a tricky asset to own. Consequently, you need to monitor the current conditions of the real estate market in your local area and the broader macro trends.
Changing Trends Due To PandemicUrban centers: Rent drops and outward migrationThe pandemic has resulted in the acceleration of technology trends. More and more people continue to work from home.
Some states are more tenant-friendly, and some are more landlord-friendly. This distinction was quite evident to real estate investors.
Eviction moratoriums: Federal and state government
Pivot Guide for Real Estate InvestorsRefinanceThe Federal Reserve has been lowering interest rates. Today we have low real yields comparable to high inflation periods and yet; a stable core CPI and low inflation expectations.
Tax planning
Have a meeting with your CPA to explore additional tax saving strategies. A lot has changed in the tax code with the passage of the Tax Cut and Jobs Act from Opportunity Zones to QBI deduction for rental property.
Out-of-state rentalsInvestors who have assets in high rent urban centers should consider the changing market dynamics. The move to smaller, rural, and suburban communities is a real phenomenon, and investors need to think about their options.
Furnished rental
The eviction moratoriums in most cities have not impacted furnished rentals. The furnished rental market consists of higher-income professionals. Often, the employer pays the rent, or the professionals need a place to stay before they buy their own house.
Workshop and makerspace conversion
A lot of individuals are now looking to diversify their income streams. Some individuals like my friend Betty have created an entire online business. Others opt for a combination of online and offline business, such as selling on Amazon, Etsy, etc.
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