High Rent City Exodus: Pivot Guide For Real Estate Investors

Investments in real estate are not liquid. Unlike other paper assets, you can’t liquidate your real estate investments at the click of a button.

Consequently, you need to monitor the current conditions of the real estate market in your local area and the broader macro trends.

Some states are more tenant-friendly, and some are more landlord-friendly. This distinction was quite evident to real estate investors.

Refinance any debt to lower interest costs. Although rates are not expected to rise, it might be better to lock any variable interest loans to the lower fixed-rate loans.

Refinance

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.

Investors 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.

Companies moving to a remote working environment would lower the salaries by having the option of hiring workers in different geographies.

With companies being fully remote, they would no longer need to occupy office space in high rent urban centers. There are opportunities when companies set up headquarters in other geographies.

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