We are living in unusual times; there is no doubt about that! Experts believe that we may have seen the peak of the real estate values in February of this year. However, there may be a bit of a rebound this summer. This is due to the millions of visitors who enjoy all the family fun and relaxation the Great Smoky Mountain National Park offers.
As a result, it should still be a good time to sell and an excellent time to look for an incredible property. However, not every property will be priced where it should be, so don’t be afraid to negotiate. Don’t be afraid to walk away and wait for the right property.
Interest rates will probably continue to climb this year. The rates are still within the bracket that your investment properties will cash flow positively. Still, I would advise you to do a financial proforma (using average rental figures for the last three years) on your property and then lock in a rate.
At this time, it is important to be prepared to hold your property and allow the rental revenue to generate your income. This will not be the time to “flip” your new properties. However, if you purchased before this last year, you likely have considerable equity, and now might be the very best time to sell. Then you can hold your cash for deals that may come along as we possibly hit a recession.
The good news is that when the country comes upon difficult times, people usually retreat to the Great Smoky Mountains. For example, we had a record year of 14.1 million visitors to the Great Smoky Mountains National Park last year. Our cabin rental revenues have never dropped off, no matter the challenge. Some say we are “Mountain Strong.” They could be right!
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