Why I'm Not Chasing Yield in a Market This Tight

Everything's tight right now. Every property gets multiple applications. Every rent I list, someone pays it without negotiating. It would be easy to read that as a green light to chase the highest yield I can find.

I'm resisting it, mostly. Tight isn't the same as good value. A property yielding six percent in a market this competitive might just be underpriced by the previous owner, not a genuine opportunity, and I won't know which until conditions loosen and the real quality of the asset gets tested.

I'd rather buy something I'm confident holds up when vacancy eventually normalizes, even at a slightly lower yield today, than chase a number that only looks good because right now everything looks good. This market's generous. Generous markets make mediocre decisions feel smart for a while.

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