Update on spring leasing in the midwest
Getting strong traffic on 1-3 bedrooms. Rents are pushing, but not screaming up
Retention up vs. last year
Short term and midterm rentals are almost as strong as the covid boom
Not seeing many concessions out there except on 5+ bedroom
Recent closing on a building I was paying off a construction loan on from a local bank:
50% LTV, 3 year 7.25%
20 year amortization, first 2 years interest only with a 1% prepay
6 days apart I priced a loan with a private lender for a cash out refi on a 3 unit.
30 year fixed. 75% LTV
March 27: 7.63%
April 4: 7.31%
30 year, 10 years interest only. 70% LTV
March 27: 7.39%
April 4: 6.92%
Powell at key inflection points
June 2019: Act as appropriate to sustain the expansion
August 2024: Further weakness in labor market is not desirable
April 2025: Our obligation is to keep longer-term inflation expectations well anchored
I offered the tenants of a brick 6 unit all two year leases extensions in early March. Their current leases go through August or September 2025.
None of them took me up on it. But every single one of them signed through September 2026.
It took me longer than I'd like to admit to get this through my head:
Just because a building is in a 'good location' it doesn't mean it will attract the type of tenants you think it will.
Something interesting going on with Furnished Finder. The amount of listings are up nearly 4x compared to last year.
We have seen steady demand still, but it's obvious that some of the Airbnb listings are starting to convert over.
Talked to a local bank with a small footprint today. 5 year loan with a 20yr amortization at 7.15%
2-3 years of interest only and no prepayment penalty. Small multi
Pre 2020 there was a lot of demand in a college town we invest in for 5,6,7 bedroom houses. Since then they have been receiving very little to no applications for rent.