In this research article by Zillow, they profile that underwater homes - homes where the value is less than what they owe has dropped below 10% for the first time since the great recession. While this number is below 10%, there are still over four million homes which are upside down.
As a note investor, we need to review these areas and see if there is inventory. If not, now would still not be a bad time to start building a team in these areas. Why you may ask? It is WHEN, not if we have our next market downturn. When that happens these areas will be hit the hardest. Therefore now would be the time to start putting a team in place (realtor, other investors, rehabbers, attorneys etc). Now as a note investor my goal is to keep the borrower in the property. But there are instances when people are upside down they will want to walk away. Therefore be PROACTIVE, not reactive. Remember the early bird catches the worm.
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