Playbook #027: Residential / Single Family Real Estate
🖼️ The Big Picture
As you’ve no doubt seen, the U.S single-family real estate market has been on fire. With the COVID-19 pandemic, we’ve seen serious migration patterns as trends move toward Americans seeking more space in the suburbs and rural areas vs. smaller apartments or homes in cities.
As a result, we’ve also seen the fastest pace of home price increases since 2005. We all know what happened a few years later… but the situation is markedly different this time around.
Still — no one has a crystal ball. And while some people believe we’re in a housing bubble, there’s strong data suggesting we’ll see a very strong housing market persist over the next few years.
In a nutshell, supply is low, and demand is high.
Aside from avoiding a 2008-level collapse, why does being in tune with the market matter so much? Because, with single family rentals, you want both cash flow (to pay the bills, replace your income, and achieve Economic Independence) and appreciation over time (to build wealth.)
If real estate aligns with your Investor DNA, you really need to ask yourself: what are my goals?
As we’ve mentioned in other real estate issues, there are creative options to get deals done without using your own cash or credit like buying with OPM (other people’s money), and Seller Financing.