Brian Bair: Mike, I’ll jump in first. This is Brian, and then I’ll let James jump in. But the thing that you’re seeing with the performance is with our risk and underwriting is obviously the more uncertain we were in the market is coming out of it with our legacy inventory. We’re underwriting with more conservative risk built into that. As we’ve seen the market started to stabilize, we’ve taken some of that risk off. Like I said, we’ve been focused on the home prices between think of 250 to 450 price points, and that’s a really good spot right now. The affordability is really strong. Midwest markets have been performing well as along with the Florida markets. And so we’ve been hyper focused on the type of products that we’re buying.
The other thing just to note on that is that the value we’re getting in renovation is really strong. Maybe you can already stronger than ever. Most of the inventory that we’re seeing hitting the market is that homes that need renovation and can get value in renovations. And so a lot of the data from most of — like 51% of the homes we’re seeing right now are maybe older than 1990, something like to that extent. So adding value through renovation has been key as well. So I would think underwriting is how we’re underwriting the homes and then adding value through renovation. And then that’s really important because as our houses then hit the market, we have a really desirable product that people can buy and then which limits our time to cash as well, which I’m very happy is below 100 days again.
And that’s where we like to be as we move forward.
James Grout: Yes. And I think just to add on, on the inventory side, if you look back historically, obviously, it ranges and there’s some seasonality in there, but kind of our inventory turnover usually is about on a quarterly basis. So whatever we — whatever our ending inventory is, we’ll sell that many homes in the following quarter. There’s plenty of seasonal trends that factor into that from a quarter-by-quarter basis. But — so if you think about just generally a 500 a month acquisition target, that would suggest about a 1,500-unit inventory carry seasonally adjusted. But I think what’s important is kind of back to our earlier comments around diversifying our product mix, focusing on Direct Plus and the opportunities there, that’s going to change as we go forward just based on what the market conditions are doing and how these other product lines are ramping.
We’ll continue to evolve that. But overall, our current capital base and our credit facility structure, that would support that level of activity.
Brian Bair: And Mike, I know this wasn’t your question, but just something that James said, maybe think of this as well is that one of the strengths of just the cash offer as well, relaunching Flex Sell that I talked about a little bit earlier is going to be key as well. Because as people see limited inventory, if they want to explore the open market and see what they can get on the retail side, we can help them with that as well, then have our cash offer as a backup, and that was a very popular product before we paused it, and relaunching that again will give people getting the flexibility of seeing what the market can do but also the cash offer. But the way, I just want to hit on that as well.
Operator: Our next question comes from the line of John Colantuoni with Jefferies.
