Rentometer just released their latest average rent price report (click link to download it).
Rents Don’t Always Go Up
When we do our basic modeling* we often use 3% per year as the amount that rents tend to increase each year (over a long period of time).
But rents don’t always go up. And, sometimes they go up more than 3% in a year.
Sometimes they go up 10% in a year then stabilize and remain at that level (0% growth per year) for several years while the market catches its breath.
In this report, it shows that 21% of markets had a rent decline. The runup in prices over the last few years and the higher mortgage interest rates (pushing 8% as of the time of this writing) and rent declines… can make real estate deals—at least for cash flow—feel worse than they were during the ridiculously low mortgage interest rates.
Maximizing Cash Flow
But, in Cash Flow Inferno: Maximizing Profit Despite High Prices and Mortgage Rates (a free bonus course) you can learn about the 88 strategies we have for improving cash flow.
And, in the Deal Alchemy™ Mastery: Optimizing Real Estate Investing Returns (another free bonus course) you can learn about how maybe this real estate investing thing is still a good idea.
Love,
James Orr
*NOTE: In our advanced modeling, I use monte carlo and a variable amount for rent increases.
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