Edit: so the interest rates have risen several percent along with the cost or labor and materials eating into the profits of serial buyers who leverage loans to buy more on previously purchased properties. If they don’t jack up the rent, they can’t manage the debt.
That said, fuck those guys, hope they go bankrupt. This isn’t someone who has an extra property they invested in years ago, these are the clowns buying everything up and squeezing the market.
Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins and would either go under or not make enough.
It’s disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn’t your get out of jail free card for your shitty planning.
Very often these aren’t traditional fixed-rate mortgages. That’s what they probably have on their “primary” home, but when you’re buying homes with the explicit purpose of using them as income generators, the landscape of available loans changes.
Why would that push them to sell?
Edit: so the interest rates have risen several percent along with the cost or labor and materials eating into the profits of serial buyers who leverage loans to buy more on previously purchased properties. If they don’t jack up the rent, they can’t manage the debt.
That said, fuck those guys, hope they go bankrupt. This isn’t someone who has an extra property they invested in years ago, these are the clowns buying everything up and squeezing the market.
Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins and would either go under or not make enough.
It’s disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn’t your get out of jail free card for your shitty planning.
I don’t understand. If they get a fixed rate at the time of purchase what difference does it make that rates have gone up?
Very often these aren’t traditional fixed-rate mortgages. That’s what they probably have on their “primary” home, but when you’re buying homes with the explicit purpose of using them as income generators, the landscape of available loans changes.