A recent Forbes article recently ranked Lubbock, Texas as the most overpriced housing market in 2023. The data showed that every home sold in July 2023 sold above its asking price. Today’s first caller asked what this means, and wondered if investors should consider selling instead of renting their properties in this market. We’re going to dive into this topic on today’s show!
This Q&A episode features three great questions on renting vs. selling in an overvalued market, how to use a VA loan to buy rental properties, and how to turn a paid off home into a performing asset. Click play to hear my answers to your great investing questions!
On this episode you’ll learn:
- What you need to know about owning properties in an overvalued market.
- Tips for using a Veterans’ Affairs loan to buy rental properties.
- How to turn a paid off home into a performing asset.
- And more!
What You Need to Know About Owning Properties in an Overvalued Market
This data showing that rental properties sold above their asking price tells you a lot about the market. You can rest assured that the market growth is there, and the appreciation is powerful as well. Not every overpriced market will make a good rental market, but Lubbock, Texas is a strong rental market because the price of rent is keeping up with the prices of properties in this area. So the great thing about this is, investors have options! If you’d like to sell your rental property, that would be profitable. Renting it out is profitable as well. It all depends on your long-term goals.
Tips for Using a Veterans’ Affairs Loan to Buy Rental Properties
Using a VA loan to buy rental real estate is a powerful strategy. However, you should know that your property must be owner-occupied at the time of purchase. If you’re willing to live in a duplex, triplex, or other multi-family property, personally I think it’s worth pursuing. Check out this book: Military House Hacking for more information.
How to Turn a Paid Off Home Into a Performing Asset
A paid off home is a great resource! If you have a lot of untapped equity, that’s a smart way to access funds to buy rental properties in proven markets. You could also consider renting rooms if that works for you personally. My friend Dan Kraus at Churchill Mortgage is the king of creative financing. You can reach out to him to discuss lending products on your primary home.
Ask Me a Question at morrisinvest.com/clayton
Episode Resources
Book a Call with Our Team
morrisinvest.com/interest <- Download the report for free!
Military House Hacking by Michael Foster
Dan Kraus at Churchill Mortgage
How to Pay Off Your Mortgage in 5 Years
morrisinvest.com/Clayton
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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