BiggerPockets Daily
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BiggerPockets Daily takes the real estate investing wisdom contained in tens of thousands of BiggerPockets Blog articles and converts it into a convenient daily audio experience... because you can't have your face in a screen while you're out there living your busy life. Rental properties, house flipping, wholesaling... it's all here. And unlike other daily podcasts, the information is timeless – so you can learn on your timeline. Skip episodes, take a break, then binge and catch up. Or just make us a part of your daily routine!
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The location (city) where you invest is your most important investment decision, not the properties themselves.
Why?
The goal of real estate investing is financial independence. But financial independence isn’t just replacing your current income. It’s about having the necessary funds to maintain your present lifestyle throughout your lifetime.
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After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes for multiple listing services (MLS) and how real estate agents conduct business. The changes will go into effect in July. This has led to an array of responses within the real estate industry, from panic and complete reworking of real estate practices to others claiming it’s no big deal and business as usual.
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After multiple lawsuits, the National Association of Realtors (NAR) has agreed to a settlement with home sellers amounting to a payment of $418 million and a few monumental rule changes for multiple listing services (MLS) and how real estate agents conduct business. The changes will go into effect in July. This has led to an array of responses within the real estate industry, from panic and complete reworking of real estate practices to others claiming it’s no big deal and business as usual.
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According to ATTOM Data’s latest Q1 2024 Single-Family Rental Market report, average gross rental yields on three-bedroom single-family homes are projected to rise by 7.55% this year. As ever, though, the devil is in the regional details. While some markets are offering landlords great rental margins—over 10% in some areas—others offer lackluster and/or declining returns.
Let’s dive a little deeper into which markets the report identifies as hot—and which ones should give investors pause, based on their projected 2024 performance.
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This week’s headlines cover the recent Federal Reserve meeting that ended with Fed Chairman Jerome Powell announcing that rates would be higher for longer. Bond yields rose in response, sending mortgage rates back into the 7-8% rage. Meanwhile, Matt assesses whether the pandemic ever recovered from the pandemic by looking at prices, rates, and inventory.
https://www.biggerpockets.com/blog/why-the-housing-market-still-has-not-recovered-from-the-pandemic
https://www.bloomberg.com/news/articles/2024-04-16/powell-signals-high-rates-for-longer-due-to-persistent-inflation?srnd=economics-v2
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If you’ve ever dipped your toes into the world of personal finance, chances are you’ve heard of Dave Ramsey. He’s a household name in the realm of financial advice, known for his no-nonsense approach to getting out of debt and building wealth.
One of the cornerstones of Ramsey’s philosophy is cutting expenses to the bone, often focusing on small, everyday luxuries like coffee and dining out. While slashing these expenses can certainly free up some cash in the short term, I’m here to tell you that it’s not the path to true wealth.
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Real estate and franchising are two popular investment options offering significant financial returns. Both allow you to earn passive income, enjoy tax benefits, and benefit from regular cash flow. However, a real estate franchise and real estate investing each have pros and cons to consider.
If you are considering investing in the housing market, which business model is best for you? Long-term wealth through property appreciation and regular rental income that real estate offers? Or the opportunity to own a tried-and-tested business model with instant brand recognition?
We’ll discuss whether investing in real estate or starting a franchise is best for your financial goals.
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Real estate investors accounted for 26.1% of low-priced home purchases in the U.S. during the fourth quarter of 2023, a record-high share, according to a new report from Redfin. Investors bought only 13.6% of mid-priced homes and 15.9% of high-priced homes sold during the same period.
Redfin defined low-priced homes as falling into the bottom third of local sales prices. The median price investors paid for homes in the fourth quarter was $453,271, above the national median, according to Redfin data. That may be due to an increase in investor home purchases in several California cities, where many expensive homes fall into the low-priced tier relative to local prices.
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2024 will be a crucial year for the U.S. economy, particularly around what the Fed will do with interest rates. But for the Fed to lower rates, they have to see signs of slowing growth.
What reliable signs are there that the economy is moving in either the recessionary or the growth direction? There has to be a better way to tell than using the Super Bowl Indicator (it doesn’t work, folks).
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Disability benefits provide important lifelines to those who are unable to work due to various medical conditions. Although your ability to work while on disability will be limited, you may still be able to earn income from certain passive investments. Whether flipping houses while on disability will affect your benefits depends on your degree of involvement in your properties.
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Investing in forest land can be a great way to diversify your portfolio. Because tree growth doesn’t rely on economic factors, consistent biological growth can create more stable returns than other financial investments.
When you invest in forestry, you invest in a lower-risk asset that provides environmental benefits. This is often opposite what’s true for residential and commercial land, which is more prone to market disruptions and other market risks.
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Yes, many pundits are still warning about a recession in 2024.
Here’s one example. Richard Duncan did a Macro Watch fourth-quarter update. He pointed out that between 1952 and 2009, all nine times total credit (adjusted for inflation) grew by less than 2%, and the economy went into a recession.
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Last week, Realtor.com published another version of its ‘‘magic number’’ forecast. The number in question is the mortgage rate number low enough to ‘‘unfreeze’’ the real estate market.
We know that the market has been in something of a gridlock for over a year now:
Home prices are very high and keep rising.
Mortgage rates are high and aren’t showing much of a downward trend.
There aren’t enough homes to go around, especially those that are remotely affordable.
Something has to give.
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I moved around a lot when I was younger. And I’m not talking from state to state or city to city—I moved a few doors down from wherever I was living. I never knew why, and frankly, I never asked my parents. All I knew was that I was with my family, so I went wherever they went.
It wasn’t until years later that I realized my parents were fixers and flippers.
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This week’s headlines cover the erosion of landlord rights as squatters racked up a series of victories in recent months, culminating in the arrest of a landlord in New York City who attempted to evict a person living in her vacant home without a right to. We’ll also cover why recession predictions are always wrong, and if they even matter to real estate investors in particular.
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In simple terms, a mobile home—also known as a manufactured home—is a dwelling built in a factory.
While these homes are used as primary residences by many, they can also make for a good investment.
So, Are Mobile Homes a Good Investment for Rental Property?
Yes, mobile homes can be a good investment for rental property when approached correctly.
While there’s no defined strategy for success, key considerations include understanding the unique market demand for mobile homes, analyzing location benefits, assessing the condition and age of the mobile home, and understanding the legal and zoning regulations that apply.
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Real estate investors seem to be taking it from all sides these days. Not only are interest rates, property taxes, and construction costs up significantly from a few years ago, but more and more legislation is being passed to make investing in and managing real estate more difficult, arduous, and expensive.
And, of course, it should come as no surprise that most of this legislation will not only hurt real estate investors but will make the problems that need solving all the worse.
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If you’re looking to break into real estate investing but need to figure out what it takes, consider house hacking. You might wonder, though: Is house hacking legal?
Is House Hacking Legal?
House hacking is legal when you do it right. For example, renting a spare room in a single-family home or a unit in a multifamily home is legal.
However, renting a garage space not meant for living isn’t considered legal. Follow your city’s zoning laws, and house hacking can be legal.
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When it comes to maximizing profit on your investment property, you’ve likely considered quite a few rental strategies. If long-term doesn’t pencil out, you could always consider revenue from medium-term or short-term tenants if your market supports it. But there is another successful, profitable rental strategy you should add to your arsenal: renting your property “by the room.”
Also referred to as a boarding or rooming house strategy, renting by room is not a new concept. But these kinds of arrangements are not as common as they were at the turn of the 20th century. Renting by room fills an important market gap, though, creating opportunities for renters who may not be able to afford an entire apartment on their own in a time of extreme housing shortages. In aggregate, you also stand to make a ton more money than if you just housed a single tenant.
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In the ever-shifting world of real estate, you find yourself at a crossroads: Do you buy now or wait for more favorable market conditions?
The housing market witnessed unprecedented shifts during the pandemic, with home prices soaring and mortgage rates experiencing volatility in 2022 and 2023 due to the Federal Reserve’s attempts to curb inflation through rate hikes. The combination of these two situations leaves aspiring investors grappling with the decision of whether to lock in stable leverage today or wait for “the next cycle.”
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