Mortgage interest rates just keep on falling much to the joy of home buyers and real estate investing companies. So should you give up flipping houses and switch to focusing on building portfolios of rental properties?
According to BankRate.com average mortgage rates sit at just 4% for 30 year fixed home loans, probably the lowest we have seen in 60 years! However some mortgage lenders are advertising interest rates even lower, with 30 year loans from just 3.25% and 15 year fixed loans under 3%.
Of course this doesn’t mean that you should give up flipping houses by any means. Certainly low mortgage rates will just make flipping houses easier as more home buyers are able to qualify for loans and those who have been sitting on the fence just can’t resist taking advantage of the opportunity to lock into low long term rates. However, rehabbers and in fact every real estate investing pro may be wise to at least add a few buy and hold deals to their portfolio right now. These low home prices and rates are the stuff that makes for incredible wealth building opportunities and amazing passive income cash flow figures.
It might also mean that real estate investing pros may also want to consider upgrading their own residences and expanding their personal real estate holdings. It doesn’t mean that you should run out there and take on more debt just because interest rates are low, but if that is in your goals then now may be a great time.
Maybe you should be entertaining buying that lot to build your dream home on or moving up to that waterfront home you have had your eye on. Then make the most of it by getting out to network with your new neighbors and local agents to find more prospects for flipping houses to.