Few have rules anymore and many follow the real estate always goes up mantra. There will be pain.
After that covid no rent dictateI we experienced, I would never invest in rentals again.
The biggest contributor to inflation for the last few months is owners equivalent rent (OER). Rent is determined by the cost of ownership, e.g. maintenance, mortgage interest, and property taxes. The Fed has increased mortgage rates deliberately. This homeowner had to refinance in order to take out money for repairs. He is not the only one facing this problem. In particular, multi-family mortgages are often shorter term, like 5 years, especially on large properties. So interest costs are going to go up as all the mortgages in the country gradually have to be re-financed at higher interest rates. That will continue to increase OER. So the Fed is actually creating inflation.