The Accidental Landlord

With the turn in the real estate cycle upon us, there is a whole new sector of realty animal, who find themeselves on the wrong side of the buy & flip fringe. Whether they bought yesterday, or 10 years ago, they intended to sell right now. But a few things needed to happen first: Entitlement changes, condo conversions, marital separations, graduating high schoolers, etc. And while they were waiting, the market changed.

And so by the time it became feasible to sell, these folks didn't like the conditions or the values, so they decided to keep the property and rent it out. And here they are, the 'Accidental Landlords'. According to this site, 1 in 5 landlords was an accidental case. Demographic details are also available at the site.

All the action happens at the margins. Watch these cases to see the emerging trends in the market. This is a potential flop in the supply/demand dynamics of rental and ownership housing. These are likely your first sellers when market conditions inch up.

If you are in the position of feeling forced to hold inventory, its imperative that your financing plan allows you the flexibility to withstand cashflow fluctuations. Don't let selling a home be a limiting factor if you want to move. Learn how you you can prioritize these goals with financing strategies by talking with a certified mortgage planner.