As interest rates finally start to fall after years of painful hikes, the DSCR (Debt Service Coverage Ratio) loan has made rental property investment attractive once more. But how are DSCR loan interest rates calculated, and what influences the final rate you get quoted? In this episode, we take a deep dive into the DSCR loan process and explain how lenders arrive at those interest rates, from the initial base rate to loan-level pricing adjustments (LLPAs). We’ll break down the key metrics—LTV r...
Nov 16, 2024•23 min•Ep. 1497
When you think about short-term rental markets, climate matters—but so do the numbers. In this episode, we dive into the extremes of seasonal and nonseasonal STR markets with a real-life story from Houston to New Hampshire. Why does it matter if you’re in a seasonal hotspot or a steady year-round market? And what are the risks of choosing the wrong one? We’ll break down top STR markets using tools like AirDNA and the BiggerPockets Market Finder to analyze seasonality, average daily rate (ADR), a...
Nov 15, 2024•13 min•Ep. 1496
In this episode, we dive into the power of the “Who, Not How” mindset—an approach that’s transformed high achievers and passive investors alike. We’ll compare two real-life stories: two house flippers who bought similar properties, yet one doubled his profit over the other, and two wholesalers with almost identical deals but drastically different results. The difference? It’s not in how they did it, but who did it. Join us as we unpack the principles from Dan Sullivan and Dr. Benjamin Hardy’s gr...
Nov 14, 2024•12 min•Ep. 1495
Nearly every day, there’s a new article on emerging real estate markets, boomtowns, or the next hottest metro for investors. It can be confusing and overwhelming trying to figure out which one is right for you. Most articles you see online touting the next best real estate market are usually speaking to homebuyers, not investors. Keep that in mind when perusing those articles. Before diving in to study all the data on different markets, first determine what you want the market to do for you. Rea...
Nov 13, 2024•10 min•Ep. 1494
Are you worried about your local rental market cooling off, fearing that you will have a property sit on the market for too long? Well, chances are you are priced too high, and offering rent concessions as a private landlord will not be able to help you speed up the application and leasing process. Though rent growth is only slightly softer than last year, far more property managers are offering short-term perks. According to a July rental market report by Zillow, one-third of property managers ...
Nov 12, 2024•12 min•Ep. 1493
In this episode, we explore Redfin’s intriguing data that once linked a 1% increase in tech jobs to a 0.49% rise in home prices, and analyze whether this trend still holds today. By diving into fresh market data from CoStar and the Bureau of Labor Statistics, we investigate how the growth of tech and STEM jobs impacts real estate values across major U.S. metros. Discover why cities like Ogden, Sacramento, and Raleigh-Durham are seeing surges in both tech employment and property prices, and learn...
Nov 11, 2024•14 min•Ep. 1492
In this episode, we dive deep into the forces shaping the rental market in 2025. With vacancy rates on the rise and rental concessions becoming more common, we explore which cities are seeing effective rents drop and why. Using insights from CoStar’s rental data, we highlight 30 markets, like Fort Myers, Austin, and Raleigh, where rental prices are cooling off after the pandemic boom. But there’s more to the story—new construction is flooding certain markets, adding downward pressure on rents in...
Nov 10, 2024•11 min•Ep. 1491
Donald Trump has won the election, and now it is time to speculate about what his administration could mean for the housing market, Namely, how will less regulation and lower rates impact the market? Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices
Nov 09, 2024•16 min•Ep. 1490
Federal Reserve Chairman Jerome Powell announced yesterday that the Fed will reduce the federal funds rate by 0.25%. It was a largely expected cut, although the election's results did leave some questions. With only one more Fed meeting before the end year, what comes next? Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choi...
Nov 08, 2024•14 min•Ep. 1489
Homebuilders are being squeezed, and that's some of the worst news we could hear in the housing market. In today's episode, we go over the latest information regarding homebuilders and what's happening on the ground. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices
Nov 07, 2024•13 min•Ep. 1488
The Federal Reserve is meeting this week to discuss a potential rate cut that could go into effect tomorrow. The Fed previously cut rates in September by 0.50%, a much larger cut than expected. It's widely believed that if the Fed does cut rates tomorrow, it will be a smaller 0.25% cut, but today, we'll discuss the possibility of just that. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate inv...
Nov 06, 2024•14 min•Ep. 1487
Election Day is here, and the two candidates running for president couldn't be any closer in the polls. But how are folks in the real estate market feeling? "Election jitters" are the talk of the town, and today, we'll talk about what comes next for housing once the voting ends. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad...
Nov 05, 2024•17 min•Ep. 1486
Discover how to identify exactly what to renovate based on competition in the local market, not personal taste, and learn to prioritize upgrades that make a measurable impact. This episode explores the formula for determining the right offer price, balancing renovation costs with holding periods, and avoiding the pitfalls of over-improving a property. Whether you’re a seasoned investor or a first-time flipper, tune in to gain insights into building market-ready properties that sell fast and boos...
Nov 04, 2024•9 min•Ep. 1485
REITs are still trading at large discounts relative to the fair value of their real estate. But is it too late to jump in, or do REITs still offer a compelling opportunity? We'll break down how REITs remain undervalued and explore the catalysts that could drive their continued growth, from potential interest rate cuts to the unique advantages that REITs offer over private real estate. Keep reading the article here: https://www.biggerpockets.com/blog/why-im-buying-reits-instead-of-rental-properti...
Nov 03, 2024•11 min•Ep. 1484
If you’re considering jumping into the Florida Airbnb game, great! You’re about to invest in a state where tourists flock in droves, carrying sunscreen and wallets full of cash. But before you go snapping up properties, let’s look at the best five markets the Sunshine State has to offer. Keep reading the article here: https://www.biggerpockets.com/blog/most-profitable-cities-for-short-term-rentals-in-florida Subscribe to the BiggerPockets Channel for the best real estate investing education onli...
Nov 02, 2024•13 min•Ep. 1483
Laura Escobar, the new head of the Mortgage Banker's Association (MBA), left a recent conference with powerful statements, demanding that lawmakers begin acting on housing issues, and highlighted major challenges in the industry, including the uphill battle developers are facing. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your a...
Nov 01, 2024•19 min•Ep. 1482
The election is next Tuesday, and several states have housing on the ballot. Today, we're covering some of the important laws and proposals you need to know about and how they could impact local markets. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices
Oct 31, 2024•19 min•Ep. 1481
Property tax bills have increased across the U.S. due to higher home prices, but Florida has seen the highest increases. As a result, the cost of ownership, along with insurance costs, is skyrocketing. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices
Oct 30, 2024•15 min•Ep. 1480
Nonseasonal markets are best for short-term rental investors who want predictability. So, what are the best markets in the country for doing just that? We took a look at data from AirDNA and BiggerPockets Market Finder to get you the answers you need. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm...
Oct 29, 2024•15 min•Ep. 1479
Running a short-term rental (STR) business on Airbnb can be incredibly rewarding, but it also comes with financial responsibilities that can make or break your success. We all love making money, but we tend to shy away from the part where we see how much we spend. Accurate accounting and meticulous bookkeeping are vital to maintaining a profitable rental operation, and STRs are even more scrutinized than typical rentals. Keep reading the article here: https://www.biggerpockets.com/blog/mastering...
Oct 28, 2024•12 min•Ep. 1478
One of the biggest real estate investment fraud schemes in recent history has been exposed. Wells Real Estate Investment promised investors that their money would be used to buy, renovate, and develop commercial and residential properties across South Florida. Instead, they gambled $28 million of $58 million in investor funds on speculative options and futures trading. Surprise, surprise—they lost almost $12 million in the process. The 660 investors who trusted Wells with their money are undoubt...
Oct 27, 2024•12 min•Ep. 1477
If you’re wondering which real estate markets make for the best investments going into 2025, the suburbs are where the action is. With affordability a major concern for buyers, low-priced suburban areas—often below $250,000—have seen a surge of new residents. The good news for prospective investors is that, according to a recent report by GoBankingRates.com, these pockets of real estate gold are spread out throughout the country and represent some of the fastest-growing areas. Keep reading the a...
Oct 26, 2024•12 min•Ep. 1476
On this episode, Matt discusses the recent decision by Provident Funding Associates to exit the Florida condo market, highlighting the implications for the real estate landscape in Florida. He explores the challenges faced by lenders, including rising insurance rates, stricter regulations, and the impact of the Surfside condo collapse. The discussion also touches on the potential shift in buyer preferences towards newer complexes and the overall decline in condo sales. Subscribe to the BiggerPoc...
Oct 25, 2024•10 min•Ep. 1475
In this episode, Matt discusses the growing trend of tiny homes and accessory dwelling units (ADUs) as a response to the housing affordability crisis. Major retailers like Amazon and Home Depot are now offering these solutions, which provide affordable housing options. The conversation explores the historical context of mail order homes, the legal considerations for building ADUs, and the potential impact of these units on the housing market. Subscribe to the BiggerPockets Channel for the best r...
Oct 24, 2024•12 min•Ep. 1474
Today, Matt explores the growing influence of corporate landlords in the housing market, their impact on affordability, and the ongoing debate about their role in communities. He highlights the statistics surrounding rental properties, the political implications, and the varying perspectives on whether corporate landlords are beneficial or detrimental to housing markets. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPocke...
Oct 23, 2024•13 min•Ep. 1473
When you start investing in real estate, you’re often driven by the promise of financial windfalls and impressive returns. Initially, the hustle and bustle of acquiring and managing properties can be thrilling. But as your portfolio grows, you might find yourself stuck in a never-ending cycle of dealmaking, problem-solving, and even property management—feeling like you’ve just created another job for yourself, leading to burnout and frustration. If you’ve ever felt overwhelmed by the demands of ...
Oct 22, 2024•12 min•Ep. 1472
For several years now, a passive real estate investment club has met monthly to discuss and vet hands-off investments. Every month, they go in on a new passive investment together so we can each invest small amounts without becoming a landlord. While they historically focused on syndications, they've increasingly focused on private partnerships. We go in on deals together with smaller investment companies that don’t raise capital from the public. Here’s what a Co-Investing Club looks for when we...
Oct 21, 2024•13 min•Ep. 1471
It’s no secret that affordable housing is becoming harder to find for many young professionals, especially those who recently graduated from college with a pile of student loan debt. However, more young professionals are discovering a path to homeownership while kick-starting their real estate investing portfolio: house hacking. Keep reading the article here: https://www.biggerpockets.com/blog/best-markets-for-first-house-hack Subscribe to the BiggerPockets Channel for the best real estate inves...
Oct 20, 2024•13 min•Ep. 1470
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Oct 19, 2024•17 min•Ep. 1469
We know evictions can be costly for both landlords and tenants (both financially and sometimes emotionally). But did you know that it can actually hurt landlords just as much? Landlords go through the costly process of evicting, and tenants go through the costly process of losing the place they called home. Here's what the costs look like when broken down. Learn more about your ad choices. Visit megaphone.fm/adchoices
Oct 18, 2024•12 min•Ep. 1468
