Market Update March 3, 2021

OVER 50% OF RENTERS LATE ON PAYMENTS TO OWNERS OF 4 UNITS OR LESS (MOM & POP LANDLORDS)

Below is an article I recently stumbled on and I thought it might worth covering. Nation wide, 4.2 million renters out of 8 million, renting in 1-4 unit properties, are behind on their payments.

Most of these properties are owned by small-scale investors who have mortgages to pay. Strikingly 14.5% of these renters have no confidence that they will be able to make next month’s payment. It it hard to guess at the repercussions will be due to the individual predicament of each small-scale investor.

However, it is common that many small-scale investors leverage lender financing and use cash-out refinancing to consistently buy one property after the other. The silver lining is that there is so much money on the sidelines waiting to snatch these properties up that I market correction is highly unlikely.