BiggerPockets Daily

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Latest Episodes:

884 - These Are The 8 Most Affordable Markets To Invest In During 2023 by Dave Meyer Mar 17, 2023

Show notes

The U.S. housing market is facing an affordability crisis. The combination of high home prices, rising 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 eight most affordable markets for real estate investors. Below, I’ll explain how we arrived at the current situation, my criteria for selecting these markets, and then give you some data about the cities. Check out the list below and determine if any of these cities fit your investing goals.

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883 - Mounting Commercial Real Estate Debt Has The Potential To Destroy Portfolios—Here’s What You Need To Know by Paul Moore Mar 16, 2023

Show notes

Are you tracking the storm brewing in the commercial real estate realm?

It’s not a big surprise. It happens in every downturn in one form or another. But investors always seem to be surprised.

Though this downturn will likely not be as devastating as the Great Recession, there is one element that makes the problem more pervasive. That is the fact that a much higher percentage of the investor population invests in commercial real estate now compared to 2008.

Crowdfunding, social media, the JOBS Act, and the proliferation of new gurus (I call them “Newrus”) have contributed to the size of cracks in the ice that have already formed and are about to give way.

BiggerPockets has facilitated a wonderful community that has spawned education, connections, mentoring, and so much more. Communities like ours have also created paths for investors and syndicators to connect at a level investment sponsors and investors could have only dreamed about in years past.

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882 - What Is Depreciation Recapture And How Does It Work? by Anthony Greer Mar 15, 2023

Show notes

Are you struggling to wrap your head around depreciation recapture? If so, you’re not alone.

When running your real estate business, you can account for the wear and tear of your property and any furnishings and appliances you own via depreciation. You can divide the costs associated with these items over several years through depreciation based on the schedules of asset classes that the internal revenue service (IRS) publishes.

Depreciation recapture refers to the portion of a gain you realize from selling a rental property taxed as ordinary income instead of capital gain. In other words, when you sell your property, the IRS taxes you on your depreciation deductions.

Still confused? That’s okay. In this post, we’ll show you how depreciation recapture works (and include examples), how to calculate it, and tell you if it can be avoided.

Here’s everything you need to know about depreciation recapture.

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881 - 7 Tips And Tools For Thriving As A Real Estate Investor In Any Market by David Bitton Mar 14, 2023

Show notes

Can you win in any market?

No seasoned real estate investor would deny the importance of keeping up with macro and micro market conditions. Ignore either, and you don’t really stand a chance.

With that said, lately, conversations of a downturning market have swallowed up evergreen advice. In fact, new data suggests that investor homebuying fell 46% year-over-year in Q4. So, it feels like not enough is being said about tried-and-true strategies, principles, and tools.

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880 - What Investors Must Do To Survive And Thrive In This Market by Nathan Zielinski Mar 13, 2023

Show notes

When people consider taking the leap to start investing in real estate, one question always persists: is now the right time to start investing? The longer this question looms in an investor’s mind, the harder the proposition becomes. The short answer is yes. It is always the right time to invest in real estate. In terms of an asset class, real estate tends to appreciate over time and provides investors with income that can lead to generational wealth.

To be frank, more people should be investing in real estate, but it takes planning, hard work, execution, and a little bit of luck. Most savvy real estate investors all have stories that include roadblocks and obstacles to their success, but they found a way to maneuver through the industry to still be thriving today.

Some investors give up too easily when something goes wrong or if the current environment isn’t as easy to navigate as they’re used to. Success doesn’t come easy, but these tips to navigate the market and find success may instill some confidence in investors that are looking to start investing or investors that are considering moving on to a different venture. There has been a lot of discussion regarding the current state of the market, and a lot of panic from investors has ensued. Interest rates have increased, which brings challenges into play, but with the right tools and guidance, there are still plenty of opportunities for success.

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879 - What Is A Late Rent Notice And How To Write One by Scott Gibson Mar 12, 2023

Show notes

Writing a late rent notice is an unavoidable part of being a landlord. The notice of a late rent payment has three purposes. First, it reminds the tenant to pay the overdue rent promptly, informs about late fees, and then warns the tenant of the consequences of nonpayment. However, a late rent letter has a more important purpose — it’s a formal document necessary if you choose to start an eviction process.

Of course, being a landlord is easier when all tenants pay their rent on time. However, even the most diligent tenant can forget to pay their rent money by the first of the month. Of course, some tenants have serious financial difficulties and cannot pay rent. But in all cases, writing a late notice for rent is a vital part of the rent collection process.

This article is a complete guide to dealing with overdue rent and how to encourage tenants to make rent payments on time. You will also find a helpful late rent notice template and step-by-step instructions on writing a late rent notice.

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878 - New Census Data Shows Where Americans Are Moving—And Where You Should Be Investing by Lindsay Frankel Mar 11, 2023

Show notes

Americans are squeezed by inflation and rising housing prices in big cities. They’re seeking refuge in states with warm climates, a lower cost of living, and plenty of job opportunities—states like Florida, Texas, and the Carolinas. An analysis of census data from the National Association of Realtors (NAR) reveals which states lost residents and which made population gains in 2022. The trends clearly indicate that many Americans are moving in response to affordability concerns.

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877 - FHA 203(k) Loan: Rehab Loans Explained by Anthony Greer Mar 10, 2023

Show notes

Fixer-uppers can be transformed into fantastic places to live. They can also get expensive. In addition to your mortgage loan, you will often need to pay for repairs out of pocket or get a short-term, high-interest loan. What if you could combine your home purchase and the cost of renovations in a single loan? With an FHA 203(k) rehab loan, you can!

FHA 203(k) loans (also known as renovation mortgage loans) let you purchase or refinance a home by combining the mortgage and repairs into a single loan with one monthly mortgage payment.

This post will explain how FHA 203(k) rehab loans work, their requirements, and the pros and cons of getting one.

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876 - Top 10 Real Estate Markets for Cash Flow in 2023 (Updated) by Dave Meyer Mar 09, 2023

Show notes

The vast majority of real estate investors get into the industry to pursue passive cash flow. Unfortunately, over the last several years, finding deals with strong cash flow has become a challenge. However, there are still plenty of markets in the U.S. that continue to offer cash flow potential.

Below, I provide what I believe to be the top 10 markets in the United States for cash flow.

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875 - Thinking About Waiting To Buy? You’re Running Out Of Time by Ryan Williams Mar 08, 2023

Show notes

Last week, I listened to On The Market episode “New Low-Interest Mortgages Are On the Way for Investors (How to Get One).” I was ready to learn the secret of acquiring a lower rate—and surprise, surprise—the three lending professionals had some ideas based on the market, but they had no crystal ball on what rates would actually do throughout the rest of 2023.

There were three quotes from the podcast that stuck out to me as a buyer’s agent and investor:

Christian Bachelder, The One Brokerage: “Volume, just on a grand total, is down. But volume per investor, if that’s a metric that I could use, is definitely [up].”
Bill Tessar from CIVIC: “I am really bullish on real estate, short and long-term. I think you can get a better deal today than you could six months ago. You can negotiate a little bit, you could demand a little bit more. You’re not paying over list price. You’re getting contingencies on your deals. You’re getting seller concessions on points. You’re getting all that stuff. That’s great. So I’m bullish on real estate.”
LendingOne’s Matt Neisser: “The one thing I’d say to borrowers [that] I say to myself is I try not to bet on interest rates.”

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