My son and investment partner, Josh Mettle, publishes an exceptional Mortgage Blog as well as a print newsletter.  In the Spring issue of his print newsletter, he said something very important for landlords that I want to share here:

“…I should mention that rental properties are about as good a hedge against inflation as you can possibly get.  I’m personally getting pretty nervous about the money printing and inflationary actions of the Federal Reserve.  One of the first things that goes up in an inflationary environment is rent and, as a landlord, you have the benefit of making your fixed mortgage payment as you steadily keep raising rents to keep up with inflation. 

We also have a very unique and pro-landlord situation brewing today as many people’s credit has been damaged and many others have just been convinced by the media that it might just be better to rent.  I personally think that is a bad decision, but for landlords this could be the perfect storm.

So far the stock market has benefited from this money-printing spree that the Federal Reserve has been on.  Profits have been pretty good with the financial sector leading the way over the last year.  Pretty soon the Fed will have to increase rates to attempt to keep a lid on inflation, which will lead to lower profits and, my guess is, lower stock valuations.  It’s been a great ride the last year for those invested in stocks. 

Now might very well be the time to liquidate some gains and move them into more inflation-insulated investments like real estate and rental properties.”

Josh also told me that for the first time in the last couple of years, he has a bunch of loans in the hopper for investors who are re-entering the market.  Interesting heads-up!