BiggerPockets Daily

By most accounts, the Fed will hold steady after raising the federal funds rate by a quarter point to 5.25% at the beginning of May. A Reuters poll found that 102 of 116 economists thought the Fed was done raising rates this year, and 30 believed they would lower it.

With inflation down from its high of over 9% last year to 4.9% in April of this year, it might seem like the Fed should reverse course now. But as Michael Gapen, chief economist at Bank of America, noted, “Inflation is more than double the Fed’s target rate, and the unemployment rate is below every FOMC participant’s estimate of the natural rate.” 

Still, with inflation halving over the last nine months, several recent bank failures, and warning signs of a recession—that many, including myself, have been predicting for a year—still being present, there are a lot of reasons to think the Fed will begin reversing course on rates. If not at the end of 2023, then probably in 2024.

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Detroit, Philadelphia, Cleveland, and Houston. Those are the only four remaining cities where it costs less to buy a typical home than to rent, according to a new report from Redfin. The analysis compared March home values and rental estimates assuming a 5% downpayment and a 6.5% mortgage rate for the 50 most populous metro areas in the United States. Back in January 2022, an analysis from Realtor.com showed that buying a home was more affordable than renting in more than half of the largest metros. But mortgage rates have increased since then while rent prices have flattened nationally. 

Naturally, the question for investors is whether buying a home can yield cash flow now that housing payments (including insurance and property taxes) exceed fair market rent in most markets. Spoiler: The long-term rental strategy is still viable—but investors face more challenges. 

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Your offer was just accepted on a beautiful property in Central Florida just a few miles from the coast. The income you will make from this short-term rental will fund your early retirement plans. Everything is humming along relatively smoothly—until you get your quote back for the insurance. Now, you feel like you just got punched in the gut. 

The cost of the insurance will certainly take a chunk out of your profits, but after talking to an agent, you count yourself lucky because had you been located just a few miles south, you wouldn’t even be able to find a carrier to cover you.

What’s going on in Florida? What about California and Texas? If it seems like finding affordable insurance in some areas is getting harder and harder, your thoughts are correct. 

Capacity is limited, and prices are going up. Many carriers are pulling out of markets entirely. But why? 

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Atlanta, colloquially referred to as the “capital of the South,” is a large and growing market with interesting investment opportunities. The metropolitan area, officially defined as Atlanta–Sandy Springs–Alpharetta, has a population of over six million and hosts the headquarters of many well-known companies such as Coca-Cola, CNN, and Chick-Fil-A (all of which oddly start with the letter “C”), and has an excellent sports scene anchored by the Hawks (NBA), Braves (MLB), and Falcons (NFL).

In this article, we’ll cover Atlanta’s housing market and economy and offer investing tips by an expert in the city.

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Passive activity loss rules are complex. These rules prevent you from using tax losses from your rentals to offset your active income. A foundational understanding of the rules will save you thousands of tax dollars over your investing career. 

And knowing how to review your tax return to ensure these rules were successfully applied is an investor superpower.

For instance, if you opened your tax returns, can you find the amount of suspended passive losses carried forward to next year? And can you easily determine if the losses from one rental offset the income from another passive activity you own?

Knowing the amount of suspended passive losses you are carrying forward is critical to decision-making around buying and selling rentals. 

Unfortunately, few investors know how to monitor this information. In this article, I will tell you about the passive activity rules and how to track suspended tax losses from your rentals.

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Managing your real estate investment portfolio gives you more control over your assets and risk exposure. You can monitor the growth strategy of your real estate business so that it always aligns with your goals, which can change as you add alternative investments to your portfolio.

While successful property management can vary among investors, there are key strategies that can enhance your skills as a real estate portfolio manager. These strategies can help you effectively manage your investments, mitigate risks, and optimize your portfolio’s performance.

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Starting a real estate business can be a lucrative venture. Real estate investment provides various avenues for building wealth and achieving financial freedom, such as generating passive income through rental properties or earning profits through property sales. However, there is much to learn about real estate investing before closing deals. 

Real estate investing (REI) offers endless opportunities for growth and success. But, starting a real estate business requires planning, preparation, building a real estate team, networking, and business knowledge. Although starting up in real estate sounds challenging, the rewards can be great. 

This article explores the key steps for starting a successful real estate business. From creating a business plan to building a strong personal network, you will learn about the tools and resources you need to become a successful real estate investor.

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Starting a real estate business can be a lucrative venture. Real estate investment provides various avenues for building wealth and achieving financial freedom, such as generating passive income through rental properties or earning profits through property sales. However, there is much to learn about real estate investing before closing deals. 

Real estate investing (REI) offers endless opportunities for growth and success. But, starting a real estate business requires planning, preparation, building a real estate team, networking, and business knowledge. Although starting up in real estate sounds challenging, the rewards can be great. 

This article explores the key steps for starting a successful real estate business. From creating a business plan to building a strong personal network, you will learn about the tools and resources you need to become a successful real estate investor.

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The real estate industry is dynamic and ever-evolving. Market conditions are constantly influenced by factors like supply and demand, interest rates, and economic cycles, to name a few. Any of these factors can cause your property values, rental income, and investment opportunities to fluctuate.

Before real estate investment trusts (REITs) were established in 1960, only ultra-wealthy investors could invest in high-income-producing properties like commercial real estate and apartment buildings. Now thanks to the internet, everyday investors can join real estate investment groups (REIGs), invest in real estate debt, and easily access different strategies for house hacking, house flipping, and real estate wholesaling. In addition, with sites like Airbnb growing in popularity, many investors have made whole careers out of investing and managing short-term rental properties.

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A sound understanding of how to calculate debt-to-income ratio is critical to your overall financial health. Rather than guess and hope for the best, this blog post breaks down everything you need to know about the debt-to-income ratio. 

Debt-to-income ratio (DTI) is a financial metric that shows how well you manage debt repayment in relation to your total income. 

In short, it’s the percentage of your gross monthly income that goes towards paying your monthly debts. Lenders use this to gauge your creditworthiness and risk level, influencing whether you get approved for loans and the interest rates you’re offered. 

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