Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins and would either go under or not make enough.
It’s disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn’t your get out of jail free card for your shitty planning.
Very often these aren’t traditional fixed-rate mortgages. That’s what they probably have on their “primary” home, but when you’re buying homes with the explicit purpose of using them as income generators, the landscape of available loans changes.
Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins and would either go under or not make enough.
It’s disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn’t your get out of jail free card for your shitty planning.
I don’t understand. If they get a fixed rate at the time of purchase what difference does it make that rates have gone up?
Very often these aren’t traditional fixed-rate mortgages. That’s what they probably have on their “primary” home, but when you’re buying homes with the explicit purpose of using them as income generators, the landscape of available loans changes.