Note: This article is courtesy of Iris.xyz
By Michael G Rivas
We’ve all heard the mantra: “Location, location, location!” When buying an investment property, a great location is often considered the #1 rule for success. But as we’ve all seen in that late night, a drag-out game of Monopoly, location certainly isn’t the only factor at play.
A decade ago, we all learned more than we wanted to know about subprime mortgages. People were investing money they didn’t have using loans they should never have been given. The stage was set for the perfect storm. Home prices started falling, refinancing became difficult (especially with historically high debt-income ratios), and those previously attractive adjustable-rate mortgages began to reset at higher interest rates.