A lot has changed since New York City began strictly enforcing Local Law 18, which effectively banned short-term rentals in the city. But it’s unclear whether improved housing affordability, the goal of the crackdown, is one of those changes. An Airbnb analysis released in January found no evidence that the new rules had impacted rent prices or rental inventory, even amid new construction completions, and the city hasn’t reported any changes in housing affordability metrics attributable to the l...
Aug 07, 2024•16 min•Ep. 1393
After a decade of relative stability in mortgage rates, the last few years have seen unprecedented volatility and changes in mortgage rates. Interest rates are often a key concern for real estate investors, as mortgages are often the difference between a cash-flowing deal and a dud. Since spring 2022, when the Federal Reserve embarked on its latest rate-hiking cycle, interest rates on the most popular loans for real estate investors, DSCR loans (part of the non-QM loans category), have moved at ...
Aug 06, 2024•24 min•Ep. 1392
The BiggerPockets Real Estate Podcast is about to hit a huge milestone—our 1,000th episode! Real estate has changed quite a bit since we started this podcast, so we’re making some changes, too. We’re bringing on new guests and new formats while focusing on investing tactics and strategies that work in TODAY’s housing market. Oh, and did we mention fewer ads, too? We’re still delivering the time-tested knowledge, inspiration, and news you expect from the BiggerPockets Real Estate Podcast so YOU c...
Aug 05, 2024•1 min•Ep. 1391
Home prices are rising across the country, but luxury home prices are skyrocketing. According to data from Redfin, luxury home prices rose twice as fast as non-luxury homes in the first quarter of 2024. But even as prices jumped, sales are still rising, even as prices for non-luxury homes have declined. The median-priced luxury home sold for a record $1.225 million in the first quarter of 2024, up 8.7% year over year. At the same time, sales of luxury homes were up 2%, compared to a decline of 4...
Aug 05, 2024•10 min•Ep. 1391
You’ve probably heard of the term “lipstick on a pig.” In house-flipping parlance, it means doing basic cosmetic upgrades that camouflage the underlying issues beneath the paint and Sheetrock. California house flippers will have to put their makeup away and bring out the heavy machinery because a new law—Assembly Bill 968 (AB-968), effective July 1—mandates a comprehensive disclosure of repairs and renovations from sellers who flip one-to-four-unit properties within 18 months of buying them. The...
Aug 04, 2024•14 min•Ep. 1390
For any real estate investor, understanding current market conditions is crucial. Right now, most investors are finding themselves in an environment where great investment deals are more scarce while competition is high. In practice, this means that as a real estate investor, you will miss out on many deals on properties advertised on the open market. To try and mitigate the effects of tough competition, you have two options: One is to try and generate more leads and somehow react faster than yo...
Aug 03, 2024•14 min•Ep. 1389
Now is a great time to be in the vacation rental business. According to short-term rental data and analytics website AirDNA, travelers are spending big on luxury vacation rentals—the more unique, the better. Recent occupancy rates for well-furnished homes increased from 49.1% to 55.9% between 2019 and 2023, with the overall STR market generating a groundbreaking $64 billion in revenue in 2023. While long-term rental landlords might balk at those occupancy rates, it’s worth remembering that vacat...
Aug 02, 2024•14 min•Ep. 1388
We identified a seemingly great target property in Sherman, Texas, which is about an hour north of Dallas in the high-growth path-of-progress area along Interstate 75 on the way up to Oklahoma. There were two structures in the deal, including 13 apartments—a mix of studios, one-, and two-bedrooms. We did the underwriting, looked at the full financials, and saw that the vacancy rate was low and that all tenants were on a year lease. With very little leverage, we would net about $4,000 a month fro...
Aug 01, 2024•10 min•Ep. 1387
Want to invest in real estate but don’t want the headaches of landlords, financing, renovations, renters, permits, inspectors, direct mail campaigns, and all the other hassles that come with a real estate investing side hustle? Me too. I’ve owned dozens of single-family rental properties, but today, I only invest in real estate passively. Passive real estate investments include notes, funds, real estate syndications, and real estate crowdfunding investments. None is inherently better or worse th...
Jul 31, 2024•14 min•Ep. 1386
Turnkey property investing can be a great option when you are just starting out on your real estate investing journey or when you want to cast a wider net with your investments beyond your local area. When done right, turnkey investment can be a part of a long-term real estate portfolio-building strategy. However, with turnkey investing, the same things that make it an attractive investment formula are also those that can make it challenging. The most significant challenge is dealing with potent...
Jul 30, 2024•15 min•Ep. 1385
Mortgage payments are decreasing, which has some house hunters returning to the real estate market. According to the latest data from Redfin, for the four weeks ended Dec. 31, 2023, the median mortgage payment was down 14% compared to October’s all-time high. Meanwhile, the weekly average rate in early January 2024 was at 6.66% for a 30-year fixed-rate mortgage, compared to 7.79% in October. This means homebuyers are finally getting a break from skyrocketing interest rates. And as rates start to...
Jul 29, 2024•11 min•Ep. 1384
As a real estate investor, you must always remember one thing: every type of investing strategy involves risk. With that in mind, it’s good practice to learn more about low-risk real estate investing strategies. You may come to find that these provide the perfect balance of risk and profit potential. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jul 28, 2024•13 min•Ep. 1383
In November 2023, Fannie Mae implemented a game-changing reduced down payment requirement of just 5% for two-to-four-unit properties for conventional loans. This presents a golden opportunity for house hackers looking to purchase or refi a two-to-four-unit property. However, few sources have broken down what this means for investors. Here, I’ll look at this new product, compare it to alternatives, and discuss what this means for real estate investors. Learn more about your ad choices. Visit mega...
Jul 27, 2024•15 min•Ep. 1382
Home sales fell to one of the lowest levels on record in May as high prices, elevated mortgage rates, and a housing shortage continue to keep buyers on the sidelines. According to data published by Redfin, there have only been two months in the past decade with fewer home sales: when mortgage rates jumped to a 23-year high in October 2023 and in May 2020, during the early days of the pandemic. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jul 26, 2024•10 min•Ep. 1381
The U.S. housing market is facing an affordability crisis. The combination of high home prices, high mortgage rates, and decreased spending power has driven housing affordability to its lowest level in decades. As such, it is difficult for investors and homebuyers alike to identify cities where they can afford to buy property. But, there are still great opportunities to buy real estate, even on a budget. I’ve done the research and have identified the 10 most affordable markets for real estate in...
Jul 25, 2024•12 min•Ep. 1380
With mortgage rates and home prices high, more homeowners are staying put, according to a report by Redfin. The number of homeowners looking to move to a different metro area started to decline in the fall of 2023, dropping to 23.9% in November 2023. That marked the lowest share in a year and a half and below the 26% seen last summer. While some of it also has to do with remote work becoming less popular with employers, the rate of mobility among homeowners has steadily been decreasing since the...
Jul 24, 2024•11 min•Ep. 13679
Real estate investing can be a one-and-done deal or a strategy with more work but potentially higher profits. If you’re an investor looking for ongoing passive income, the BRRRR method may be a good option. The BRRRR method means you buy, rehab, rent, refinance, and repeat. It’s a cycle to build a robust real estate portfolio by purchasing undervalued properties using the equity of an existing investment property, renovating the new property, renting it out, and repeating the process. Learn more...
Jul 23, 2024•9 min•Ep. 1378
When my husband and I got married, we bought our first place—a brand-new, 1.5-bedroom condo—in Bedford–Stuyvesant, Brooklyn. At the time, the Bed–Stuy neighborhood was rough—for example, a biker gang that loved to throw huge all-night parties was headquartered at the end of our block, and there were abandoned buildings every few feet, often rustling with the sound of homeless inhabitants. Back in the early aughts, this ZIP code was not for the faint of heart. But at $375,000, a solid C-/D neighb...
Jul 22, 2024•10 min•Ep. 1377
Remember the container ship that got wedged in the Suez Canal in March 2021? Within days, hundreds of ships halted. In less than a week, 12% of global trade halted. This is merely one simple example of volatility. A tiny event in some remote corner of the world made life perilous and unpredictable for a billion people. The shockwave reverberated across the Earth. There are many more examples like this. COVID-19 spawns in Wuhan, China, and creates a once-in-a-100-year worldwide pandemic. Or more ...
Jul 21, 2024•12 min•Ep. 1376
Since 2006, my team and I have delivered almost 500 Las Vegas investment properties (> $130 million). The properties had an annual appreciation of 15% and annual rent growth of 7% (2013 through December 2023), and our average vacancy rate stayed below 2%, including during two major economic turmoils: 2008 housing crash: Zero decline in rent and zero vacancies. COVID pandemic eviction moratorium: No impact. So why did our clients’ properties perform when most others did not? Learn more about your...
Jul 20, 2024•12 min•Ep. 1375
Do you want to get started in real estate investing but don’t have the funds to purchase an entire property? Fractional real estate investing may be the answer you’re looking for. Fractional investing offers lucrative opportunities to own part of a property rather than an entire one. Fractional real estate ownership can be affordable for startup investors who want to enter the real estate market. But what is fractional investing? And is this the right investing model for you? Learn more about yo...
Jul 19, 2024•19 min•Ep. 1374
A December report issued by staff of the U.S. Securities and Exchange Commission (SEC) discusses several potential modifications to the accredited investor definition, as suggested by sources like the Investor Advisory Committee and the Small Business Capital Formation Advisory Committee. The Dodd-Frank Act of 2010 requires the SEC to review the definition every four years in light of changes in the economy. The goal is to maintain sufficient protection for unsophisticated investors while provid...
Jul 18, 2024•19 min•Ep. 1373
There may be a real estate underinvestment crisis looming in the coming decades, thanks to baby boomers. According to a joint study from Morning Consult and home improvement company Leaf Home, 55% of baby boomers plan to age in their 40-year-old-plus homes and have no intention of selling or renovating. That means when millennials inherit homes, they may be faced with a mountain of deferred maintenance that may prove costly and lead to a potential construction and supply crunch. Meanwhile, empty...
Jul 17, 2024•10 min•Ep. 1372
At the end of January, the House passed legislation that would extend some of the provisions of Trump’s 2017 tax bill and expand the Child Tax Credit (CTC), along with other tax reform measures. If passed by the Senate and signed into law by President Biden, the Tax Relief for American Families and Workers Act of 2024 would allow real estate investors to continue to claim 100% bonus depreciation, elect to expense depreciable business assets up to an increased limit, and potentially deduct busine...
Jul 16, 2024•14 min•Ep. 1371
One of the questions we see on the BiggerPockets forums over and over again is, “Where do I find a good lease document?” When people ask that question, they really don’t mean that they want a good lease document. What they mean is they want a free lease document. The truth is that leases are really the most important investment you’ll make when starting your career as a self-managing real estate investor. The free leases that self-managers share are likely to be the most expensive option you’ll ...
Jul 15, 2024•11 min•Ep. 1970
In the ongoing quest for happiness, a recent Empower poll disclosed that around 60% of Americans believe money can indeed buy happiness. However, the dynamics of money’s role vary from person to person. For 67% of respondents, happiness hinges on the ability to pay bills on time, while more than half prioritize living debt-free and enjoying luxury without financial worry. Another 45% see homeownership as integral to their path to happiness. Learn more about your ad choices. Visit megaphone.fm/ad...
Jul 14, 2024•12 min•Ep. 1369
You can’t scroll through your daily news feed these days without seeing story after story about the impact of generative AI on virtually any and all industries. It’s here, and the good news is it can be an incredibly useful tool in real estate. According to a recent analysis by McKinsey Global Institute, “In our own work with AI, we have seen real estate companies gain over 10% or more in net operating income through more efficient operating models, stronger customer experience, tenant retention...
Jul 13, 2024•9 min•Ep. 1368
In 2005, I decided to start an investor services business. I reviewed all the popular investing literature. What I found were self-professed experts offering opinions and no processes. As an engineer, opinions hold little value. I shifted my research focus to the commercial sector, where I found rigorous processes that resonated with me. I discovered that retail store location selection and stocking methodologies are excellent guides to systematic residential investing. Here, I will explain how ...
Jul 12, 2024•15 min•Ep. 1367
In case you missed it, Scott Trench, CEO of BiggerPockets, wrote this thoughtful article: Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why. Scott and I have been discussing this topic offline anyway, so I thought I would take him up on his invitation to debate the subject online. Healthy debate is what BiggerPockets is all about, right? I will start by saying I agree with most of what Scott wrote. I agree with most of his facts, the challenges facing the multifamil...
Jul 11, 2024•22 min•Ep. 1366
Virtual house flipping can be an exciting, lucrative way to get involved in real estate investing. But as with as any type of investment, it’s important to understand the finer details to determine where you fit in. Learn more about your ad choices. Visit megaphone.fm/adchoices
Jul 10, 2024•13 min•Ep. 1365
