BiggerNews June: Why “DIY Landlords” Will Win in a Recession

Rising interest rates mean higher mortgage rates. That makes home ownership less affordable, which will likely lead to a decline in prices. With the housing market slowing, real estate investors may face additional challenges.

Renters may not be able to pay increased rents at the rate of increase over the past two years. That could lead to a potential squeeze for many landlords.

However, landlords who take a do-it-yourself (DIY) approach to their properties can come out ahead. During a recession, they’ll save much-needed capital by undertaking repairs themselves.

Does that mean real estate investors should throw in the towel? Not necessarily. Many local real estate markets remain tight, as demand continues strong.

Plus, housing tends to hold up well during periods of inflation. Investors who are able to borrow at a reasonable cost can leverage the modest returns of real estate and grow their wealth.

That’s true even if the cash flows from renting out a property are being compressed due to rising costs.

Overall, those who are able to navigate a challenging market will come out ahead in time. And real estate investors who learn how to roll up their sleeves can avoid a reduced profit margin by taking care of their rental properties.

To listen to the full interview on the opportunity for real estate investors now, click here.