What do the results of the 2020 election mean for real estate investors? As of today, nobody knows for sure. Many state and national elections are either decided or are close to being so. Control of the Senate is yet to be decided as some key run-off elections are pending in Georgia this January. We could be seeing changes to the tax code depending on the outcome. As this situation begins to take shape, we’ll be sure to relay to you what we know.
Appliances On Back Order
One thing we have noticed is how hard it is to get appliances right now. Shortages are hitting home improvement stores nationwide as well as wholesale suppliers. An example of this came up as we ordered appliances for some of our upcoming projects in Idaho. Suppliers are having a hard time meeting demand, so we had to look into different models and makes for some units. If you’re involved in any construction projects, you’ll probably notice this too. The increase in demand as people stay at home has made this part of the process much more difficult.
Delinquencies Staying Consistent
To date, our partner management company, MAXX, has not noticed a significant uptick in delinquencies (and neither has apartments as a whole, according to the National Multi-Family Housing Council). We are keeping a close eye on FIG’s rental portfolio as the COVID-19 situation unfolds. When tenants do have trouble making rent, MAXX either works out a payment arrangement or refers them to the local government agencies or non-profits who can offer rental assistance. Evictions are an absolute last resort. The job market is recovering for now and the situation seems stable.
Renewal Rates Have Improved
One important change we’ve seen is that tenants are more likely to renew their existing leases than in the past. This is a welcoming sign for investors during this volatile time. There are two sides to that coin though. Higher renewal rates mean leasing agents have to get more aggressive when stabilizing new developments. We expect this to be the case through Spring of 2021
Multifamily Opportunities
If you’re in the market for multi-family properties for around $500,000 or under, check out our project, the Village on Greenway in Maricopa County. The Phoenix metro has weathered COVID-19 better than most metros and is projected to fully recover by mid-2021. We have triplexes available that are scheduled to start construction as early as next February.
We also have 2 duplexes that are perfect for a 1031 exchange in our Starwood Farms project (Cypress, TX). This project has been sold out for quite some time on our website. But we just finished subdividing a fourplex into two duplexes that will be fully constructed by late January. Respond to this email and we’ll send over a copy of the site map, proformas, plans, etc.
Sincerely,
The FIG Team (contact us)