One constant truth is that opportunity never vanishes, it simply manifests itself differently. For the last few years, buyers were willing to pay higher and higher prices, rents followed suit, and investors had a difficult time finding deals. Moving forward, the exact opposite has the potential to be true. So where will the opportunity for investors show itself in a shifting market? There are a few places that we would all be wise to look.

Property Tax Blues

The first place that deal flow is likely to show itself is in properties that were purchased as borderline deals a year or two ago, but that will become unprofitable with the increase in property taxes. Cash flow will be siphoned off as monthly payments increase, causing a headache for investors that no longer view the property as a viable investment and may be willing to sell at a price that make sense.

Capital Gains Trouble

Another good problem to solve will be for investors with long term holds that are looking to cash out, but don’t want to pay the hefty tax bill that comes with the sale. This will take some creative deal structure, though solving problems like this can lead to consistent deal flow in all market environments.

1-2 Door Investors

The simple fact is that it has gotten more difficult to build a portfolio over the last couple of years and many investors haven’t been able to reach a level of stabilization in their portfolios. This is the time when many investors consider liquidation for the simple fact that they aren’t generating the returns they want, and would rather sell and deploy their capital elsewhere. This can be a great opportunity for more experienced investors to provide pick up deals, provide assistance and even network and form partnership with other investors.

Any way you slice it, the market is changing, so strategies must change too. The good news is that, with inventory on the rise, there is likely more opportunity for investment than at any point in the several years.

If your looking for the best property management team in North Texas to look after your portfolio, give Homeward Property Management a call today at 469-649-7666!