BiggerPockets Daily

1247 - 11 Tips To Generate Cash Flow When Interest Rates Are High by Jeff Vasishta

03.14.2024 - By BiggerPocketsPlay

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Rental properties have been one of the largest real estate industry sectors to be hit by the increase in interest rates. Investor purchases of single-family homes tumbled 29% in 2023, according to the Wall Street Journal, citing data from Parcl Labs, a real estate data and analytics firm. Realtor.com concurred that last year saw the largest annual drop in investor buying activity in at least 20 years. 

However, for those who can buy with cash or hold their nerve (and pay the mortgage) during the current cycle, now is an ideal time to strike a deal with sellers stranded by high rates. When rates eventually fall, investors will flood back to the market and prices will increase, allowing intrepid investors to refinance, looking like financial geniuses. 

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