In such an environment, it's difficult to know months down the line what a home will appraise for, she said.
"You have to be able to refinance out. If the market is trending downward, you don't know if you're going to get a higher appraisal than what you bought it for," Curry told Insider. recently gave a similar assessment in an interview with Insider, saying that betting on appreciation in the current market is risky, and that a buy-and-hold approach is more viable.
"For us to get a situation again where our home equity did what it did, we would have to come back into a world where interest rates went back down into the threes," Olsen said. "Expecting that is expecting another black swan event. You know, long run mortgage rates are expected to be around five-and-a-half, six.
Curry said using this strategy allows new investors to get into a home with a smaller down payment, because down payments for properties that are owner-occupied are typically smaller than those for investment properties, which can be 20-25%, she said. The buyer usually has to live in the property for at least a year.
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