Pittsburgh-based investor and house flipper John Walker of Turnkey Investment Properties and his business partner, Jim Auten, usually have around 10 flips on the go at any time. When rates were low, and business was booming, that number doubled. However, high rates and low inventory have seen many of their fellow flippers exit the market. 

“It’s a case of the last man standing right now,” Walker says.

According to recent Bank of America research, it’s a scenario played out across the country, with sellers staying put for fear of sacrificing a low mortgage interest rate. About 80% of outstanding U.S. mortgages are at interest rates below 5%.

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In the ever-changing landscape of the sharing economy, the concept of home sharing has undergone significant transformations. With the rise of short-term rental platforms like Airbnb, travelers and hosts alike embraced the idea of unique, short-term stays. However, the question that now looms large is whether the Airbnb dream is dead.

While challenges persist, the evolution of the industry tells a different story—one of adaptation and innovation. Real estate investors, in particular, are exploring new avenues, with a growing interest in mid-term rentals.

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I often hear new investors ask: “What types of properties are the best? “What should I look for when evaluating rental properties?” 

They are starting at the wrong point. As with any major venture, real estate investing starts with clarifying your goal. And every investment decision you make must align with your goals.

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A new report from Redfin finds that 26% of investor purchases in Q4 2023 were in “low-cost” properties, up significantly from previous years. The increase comes as housing prices remain elevated and mortgage rates stay locked around the 7% range. Meanwhile, a new bill has entered committee in Congress, where senators are deliberating whether to set on track a new law that would tax real estate investors at a graduated rate on every new property that they purchase. We’ll cover both of these stories and why investors must pay close attention to this bill.

https://www.biggerpockets.com/blog/how-the-affordable-housing-and-homeownership-protection-act-will-impact-investors 

https://www.biggerpockets.com/blog/highest-share-of-investors-on-record-are-buying-low-value-homes

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“You’re making too much money.”

That’s what echoed in Missouri native Ryan Haywood’s ears after his boss decided to slash his commissions—a “sales haircut,” as it’s bitterly known in the industry. 

This notion of being penalized for success was perplexing for Ryan. Out of all the downsides of his job—the after-hours calls from his boss that he was expected to answer, dealing with poor management, and working up to 80 hours a week—this pay cut was the last straw. He didn’t realize it at the time, but this setback was about to unveil a path that would lead his family toward the future that Ryan and his wife Megan had dreamt about.

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As everyone knows by now, rising interest rates and low supply have been the most significant factors shaping the real estate market since 2022. 

The Federal Reserve began raising key interest rates in March 2022 in response to skyrocketing inflation. Following the pandemic-era sharp rises in the cost of materials and products across several industries, inflation in the immediate aftermath shot to its highest levels in 40 years. To tackle these high inflation rates, the Fed raised rates 11 times between March 2022 and July 2023, from almost zero to 5.5%. 

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Should you aim for diversification in your real estate investments? What about your stock investments?

Oddly enough, many real estate investors never bother to ask that question. They just assume that all real estate investments require a lot of money and that each niche requires so much skill that you can only master one.

They’re wrong on both counts, and it adds risk to their investment portfolio.

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House hacking is often one of the first strategies that many new real estate investors use because it’s a simple way to live for free while your renters cover your mortgage payments. House hacking involves buying a single-family or multifamily property and renting out the units or rooms you aren’t occupying.

If you are considering dipping your toes into real estate investing with this strategy, it’s important to consider the tax implications so you will know how much profit to report. Underreporting rental income on your taxes could cause problems for you later if you are audited.

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Flipping houses can be extraordinarily profitable, which is one of the reasons why it’s a popular real estate investment strategy.

You go in with a competitive bid, invest some funds making repairs and sprucing up the place, and then sell. It’s rewarding, and when done well, it can be extremely lucrative. 

And while many people know about the potential expenses and risks that come with the actual acquisition, remodeling, and sale of house flipping, some investors are surprised to learn about the taxes involved.

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The U.S. real estate market appears indestructible, with home prices nationwide continuing to increase. The latest report from analytics company CoreLogic shows impressive growth of 5.2% year over year in November 2023.

It’s not an anomaly, either—home prices grew 4.7% year over year in October 2023. CoreLogic’s projection is a steady home price growth throughout 2024, forecasting a 2.5% year-over-year increase in November 2024 compared to November 2023. 

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