Here’s a question for all the experienced investors. If we are starting an inflationary cycle, what’s the smart play for a real estate investor?
My guess is that buy, hold and rent makes the most sense. I’m thinking that higher material and labor costs, combined with higher mortgage rates for the retail buyer, will cut into the profit margin on rehabs.
Each real estate market is unique and each is pulled in different directions by many factors. Inflation is just one of the factors. You must know your market and make intelligent guesses to guide your investment strategy.
Every deal is different. One deal may be a flip. The next may be a buy and hold. A “What’s Hot and What’s Not?” poll on a message board is meaningless.
Know your market and you will know what deals make sense.