Blog:
Apr 10, 2025
Tariffs, Mortgage Rates, and more... Copy
Author(s):
Tyler Lingle
Don’t worry.
I’m not going to pretend to be some macroeconomic expert today. I will not tell you how the “reciprocal” Trump tariffs will affect the nuances of mortgage rates and the housing market.
I don’t know.
The biggest thing to say right now is that there is a lot of excess NOISE. There’s truly nothing discernible as a lasting impact, things are just moving too quick.
Just after Tuesday when after everyone went to bed feeling gloomy, the market surged after Trump announced on Wednesday he is pausing some tariffs.
What I can say is things are volatile right now.
Late last week heard news that we could see mortgage rates go down this year. Why? Following a flight from securities, investors flocked to treasuries. The 10 year treasury yield was going down. Bond prices have an inverse correlation with price. (Don’t ask, I don’t understand it too well myself 😅). Mortgage rates tend to follow the 10-year treasury yield, meaning they’d go lower.
However, we saw a pretty sharp rebound to the highest interest rates of the year on Tues/Wed.
I truly don’t think the market knows what it’s doing right now. It’s just being reactive. One Trump tweet or reference throws the stock market up or down 9 percent, and bond/rates are going all over the place.
The Fed is still responsible for it’s dual mandate: controlling inflation and keeping us out of recessions. In all likelihood, mortgage rates will be staying where they are at unless we see discernible movement of inflation (up) or employment numbers (down). Really at this point it seems equally likely that rates go up or down in the next 6-12 months. But more likely they just hover and bounce rapidly around where they are at.
Trump wants to see rates go down, and is applying a lot of pressure to Powell and the Fed on that; meanwhile, the Fed is in a difficult spot and it’s hard to make predictions on what they do… The elephant in the room is: Are tariffs a quick negotiating trick that Trump reverses quickly when other nations come to the negotiating table, or are they here to stay (which could indeed throw us into a recession). Personally, I think it’s just merely a negotiating chip, as we noticed yesterday him hesitating.
Enough of the politics. Like I said I am not an authoritative source. If you want more on this topic I recommend this episode of HousingWire.
Flipping Client Story
Pending in Danville, IN | Client Flip Project
My flip client just listed & pended this property. He bought this property I believe from a wholesale connection, off-market. I was able to be a gap lender on it, while the main financing was hard money lending. He was essentially no money out of pocket on this. He did a fairly light turn of flooring, paint, appliances, light kitchen updates.
I put the sign up a bit early as a “Coming Soon” and a neighbor in pursuit of a home near where they were renting put an offer in before we even had the time to post it on the MLS. Signs still sell homes, ladies and gentlemen!
His Numbers:
Purchase Price: $130,000
Rehab: $15,000
Sales Price: $225,000
Profit after all fees: ~$40,000
Sometimes flipping is quick and easy money.
Sometimes it leaves you stressed, maxed out financially, and regretful.
This wasn’t his first, and won’t be his last. I recommend flipping real estate those that have the runway to learn how to do it the right way and set up long term systems. We are not in a market or time to be a hobbyist flipper. Two cents I’ll leave here I guess.
This Week’s Deals
Below you’ll find deals I handpicked from what we have sourced off market and on the MLS.
PS- We have two investors off loading a significant amount of their portfolios of Single-Family and Multifamily properties. If you want the Spreadsheet list of these properties respond, “Portfolio” and I’ll get it to you!
Just Listed Ready-to-Rent-Out Duplex 🔥
429-431 N Colorado St.
Tuxedo Park
Duplex; 2 beds, 1 bath per side
Rent estimate $1200-1300 per side
What I like about this is that it’s turnkey and ready to go; the main thing to watch out for is the area is still very much “up & coming”
Cozy Cabins (4 Brown County Airbnb Package)
Asking $3.6M
Revenue is at $400,000 with NOI $300,000
Selling at an 8 capFully furnished with website, social media, and everything prepped (selling all business assets)
What I like about this deal is that the products are extremely high-end; the main obstacle here is the capital cost as 25% down is $900,000. This is the perfect fit for high networth individual that wants to harvest huge tax savings with depreciation write offs…
Near Irvington Rental for $159k 🔥
633 S Grand Ave — Irvington area (Zillow Link)
Asking $159,900
Fully Renovated — New sewer, HVAC, windows, roof!
2 bedrooms, 1 bath
Large unfinished basement, 2 car garage
$1400-1600 Rent Rate, or $2000-2200+ Mid-term rental
What I like about this is that it’s fairly clean and easy; the main thing to watch for is making sure you have appropriate cash flow expectations
New Build Duplex Opportunity 🔥
2018 Rembrandt St. | Riverside
$425,000
25% Down
Rent out near the 1% Rule; 8-12% annualized ROI
Looks exactly like the one on the left
Neu group is the developer
More Information here, we have other lots available for this same buildWhat I like about these is that it’s a brand new product and has a lot of features renters want (3 beds, 2 full bath, LVP, quartz countertops); the main thing to keep in mind is the 25% down up front
As always, if you have interest in deals email me (tyler@tylerlingle.com). Or set up a time on my Calendly.
The Best Content I’ve Consumed This Week
HousingWire Daily - Logan Mohtashami: Volatility as market goes wild. I always appreciate these short insightful episodes on the housing market. I gain a good 80/20 analsis on what’s happening from them. This one helped me discern what’s going on right now with tariff & economic mania.
Modern Wisdom #922 - Naval Ravikant - 44 Harsh Truths About Human Nature. Naval is always so insightful. Great episode full of wisdom on how to be a better person, leader or entrepreneur.
The Roots Podcast - Internal Episode - Stop Flipping Out of State: Here’s How to Build True Wealth. Max and I don’t hold back here. Talking about all the stupid and costly mistakes we see out of state investors making. But also we discuss pitfalls of running a business, how we are trying to scale up the best we can amidst obstacles, and Max grills me on my morning routine ;)
Full Episode:
Upcoming Events
Our real estate events are always a ton of fun. Laid back, just authentic conversation about real estate, life, and everything in between! They are free and open to anyone, especially the curious.
Thursday, March 27th — 5-6:30pm — First Time Homeownership Workshop Co-Hosted with Approved Mortgage. Find details here!
Thursday, April 17th — 4-5:30pm — Real Estate Happy Hour w/ Roots co-sponsored by Seth Wilcock Resolute Lending. Find details here!
Thursday, May 15th — 12-1pm — Real Estate Luncheon. Discussion with Max Moore & Tyler Lingle co-founders of Roots on how to leverage email / newsletters for high-value lead generation. Great for those in industry. Free lunch! Find details here!
What I’ll leave you with…
As much as I like talking about real estate nitty gritty and building wealth, true wealth is found primarily in the spiritual, relational, and character realms.
I hope that is not lost here.
Identity matters.
I identify as an investor, agent, but my other identities matter more:
Child of God.
Husband.
Father.
Brother.
Friend.
When I’m at my best, I live out of the above identities first. Starting at the top.
It is only there that I can live out the work / business ones properly.
Quote I’ll leave you with today from a book I love related this topic:
“Your mind, body, and spirit are one in relationship, just like the Father, Son, and Holy Spirit. Your mind, body, and spirit work in relation to one another. If one part is unfit, they all struggle. It's a fact.”
Jamie Winship author of Living Fearless
Thanks for the read!
I started in real estate in mid-2021 after 4 years teaching in inner-city Indy. I found a passion for real estate after house hacking on Indy’s eastside. In 2023, a partner and I started Roots Realty Co.
Roots is a brokerage team part of the @properties brokerage in Indianapolis. We specialize in helping homeowners & investors Plant Roots & Build Wealth. We offer unique insights into Indy / Investing but also one-of-a-kind networking and education events. Come meet us…
I give anyone 30 minutes on a call. Book a time to chat and we will delve into your goals!
