Market fluctuations have led to sweeping changes to almost every area of real estate transactions. One of the questions that I get now is if the investment and income situation has evened out making it a good time to buy. The answer that I would give and this is only my opinion, it is a good time to buy. I would qualify this statement with a couple of matching statements. Most of the investor clients are looking to see if a property is going to “pencil” on paper with the current rental market.
Rental fees and rental market conditions have adjusted to reflect our economy also. When someone asks if there is a history to give a higher cap rate, I must say it shows an average cap rate but may not be all that it seems due to reduced monthly rents to combat vacancy rates. A quick answer would be to buy a residential investment property at the current prices is good, can you get the rents to make it cap at normal middle or high rates may need some more history. My real answer would be we need a year of rental history in order to see what the property would actually really pencil.
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