So after years of thinking about it, my wife and I just went into escrow on a rental property. Wow, the market is CRAZY right now. We competed for units against 12-15 other offers. People are offering no contingency, all cash, 15 day closings, way over asking. Incredible. By way of background, this is north san diego county, townhomes between 300-400k. When we asked our agent if we should move up price points, she told me she's selling her $600k listings to all cash buyers. The rumor floating through the agent community is it's just one or two persons/entities as it's the same agent(s) with the highest/best bid. Swirling talk of offshore chinese hedge funds etc. - not sure the Asian Illuminati is likely to take personal interest in rinky dink properties in my neck of the woods.
Anyway, it looks like we got it for a price where we should be cash flow neutral at first, which we consider a major win. But at the rate prices are increasing that window is closing fast. It's a 20% increase from last fall, at least.
Of course, now that we can lock interest rates have moved up! At least it's a small mortgage.
Anyway, it looks like we got it for a price where we should be cash flow neutral at first, which we consider a major win. But at the rate prices are increasing that window is closing fast. It's a 20% increase from last fall, at least.
Of course, now that we can lock interest rates have moved up! At least it's a small mortgage.