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155: The 8 Best Housing Markets in The US For Low Prices and High Cash Flow Nov 03, 2023

Show notes

We’re about to show you the eight best housing markets you’ve never heard of before. If you want boring, unsexy markets that give you mailbox money every month, have growing populations, cheap homes, and strong economies, bring your notepad because you probably haven’t thought of any of these markets before. We sent our On the Market researchers on a quest to find the country’s most boring, underrated, yet promising rental property markets—and we’re sharing the list with you today.

From college football towns to underrated beach cities and strong manufacturing centers, almost all these cities have cash-flowing real estate where you can find steals and deals easier than already-tapped markets like Miami, D.C., or Denver. Some of these markets are on the smaller side. Still, with housing affordability tanking, these cheaper states could see a massive influx in population as coastal workers seek financially stable inland cities.

So, if you’ve been saving up to buy your next deal but can’t find anything worth investing in around your area, check out ANY of these eight markets because if you don’t buy in them, we will (and Henry already has)!

In This Episode We Cover:

Eight boring, stable, cash-flowing real estate markets you can invest in NOW

The East Coast beach city with MASSIVE population growth and cheap home prices

The college football towns where you can make a killing on student housing

Staying away from single-industry markets and what happens when employment starts to fall

The state pushing for zero percent state tax that could see a significant population boost

The growing city where Henry is gobbling up rental properties as fast as he can

And So Much More!

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Get on The Waitlist for BPCon 2024 in Cancún!

The 4 Most Affordable, High Cash Flow Real Estate Markets of 2023

These Are The Top 20 Up-And-Coming Real Estate Markets

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154: 2023 Investing Mistakes That Lost Us Hundreds of Thousands Oct 30, 2023

Show notes

We messed up. Our real estate investing mistakes in 2023 totaled up to hundreds of thousands of dollars, and although On the Market is THE show where expert real estate investors come together, today is proof that we all make mistakes. From forgotten tax bills to landscaping debacles that cost six figures in interest, letting your property manager run your short-term rental into the ground, and forgetting about a house you own—these mistakes are rough.

If you feel like you made severe investing mistakes in 2023, worry not, because on this episode, our expert guests will talk through some of their most painful real estate losses of the past year as entertainment for you to enjoy! Ever forgot that you owned a house that had interest accruing on it? Thought that deal you lost money on was over? Didn’t pull a permit, and now you’re stuck paying six-figure holding costs over some shrubs? You probably haven’t made these mistakes, but our guests have!

Stick around to hear exactly what you SHOULDN’T do in 2024 (and beyond) and how you can turn a terrible situation into a profitable deal…or at least a lesson you don’t repeat.

In This Episode We Cover:

Why you should NEVER wait to pull permits on a flip and how it could cost you six figures

The massive “loan forgiveness tax” you could be forced to pay if your deal goes south

Forgetting about a flip and the downside to scaling your portfolio too fast

Whether or not you missed the best buying opportunity of the past year

Hire slow, fire fast, and signs it’s time to relieve your property manager of their duties

Why you’ll want to become Henry Washington’s next private money lender

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

3 Investing Mistakes You Don’t Want To Make In 2023

14 Mistakes New Investors Make

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-154

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153: HousingWire CEO: This Inventory Shortage Could Last Decades w/Clayton Collins Oct 27, 2023

Show notes

Another housing market “frenzy” is much more likely than many of us thought. With the traditionally slow fall/winter season upon us and housing inventory gradually inching up, home buyers could get a much-deserved break. But this won’t last for long. The long-term outlook on the housing market isn’t looking good for buyers, and many Americans will be forced to rent as a result.

So, what could cause the next home buying “frenzy”? We’ve got Clayton Collins, HousingWire CEO, on the show to give his take. HousingWire has been acquiring data and research companies as fast as possible, trying to build the most perfect picture of the housing market available. And right now, it looks great for sellers but not buyers.

With inventory still in the gutter and mortgage rates at a twenty-year high, homeowners will only consider selling once rates have dropped. But won’t lower rates flood the market with eager home buyers all over again? We’ll get Clayton’s opinion on what could fix the inventory shortage, when mortgage rates could drop, real estate markets with the best chances of price cuts, and what to watch out for in 2024.

In This Episode We Cover:

America’s underbuilding problem and how this could create an inventory shortage that lasts decades

Whether or not rising housing inventory is a sign of a coming crash

The real estate markets most likely to see price cuts in the coming months/years

What has caused mortgage rates to stay so high for so long (and what will happen when they fall)

The housing market “frenzy” that could restart once THIS happens

Multifamily mayhem and big problems in today’s rental market

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

Hear Our Interview with Altos Research’s Mike Simonsen

HousingWire’s Logan Mohtashami on What Will Cause Mortgage Rates to Finally Fall

HousingWire: Home prices are likely to fall in these markets

Tune into “Housing News” with Clayton

Get Up-to-Date Real Estate Insights from HousingWire

Connect with Clayton:

Clayton's Twitter

Clayton's Email

Clayton's LinkedIn

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-153

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152: New Mortgage Report: Originations Plummet, Buying Power Wiped Out w/Andy Walden Oct 23, 2023

Show notes

Mortgage demand has fallen off a cliff, according to ICE’s recent Mortgage Monitor Report. With affordability hitting new lows and mortgage rates still rising, home buyers have simply given up on buying a house any time soon. Mortgage applications are now forty-five percent below pre-pandemic levels, and something BIG will have to change for buyers to jump back into the market—are lower home prices the answer?

To explain the Mortgage Monitor Report’s most recent findings, we brought on ICE’s Andy Walden. Andy has the most recent home buyer, mortgage rate, foreclosure, and delinquency data to share. We’ll talk about the buying power that’s been wiped out of the market, why mortgage applications fell off a cliff, rising unaffordability and whether or not it’ll force foreclosures, and the real estate markets with the most potential for home price growth.

Andy even gives his 2024 housing market forecast with some eerie warnings about what could happen to home prices as we reach an “inflection point” in the market and enter the traditionally slower winter season.

In This Episode We Cover:

Why mortgage originations are falling faster than ever before (and what this means for home prices)

Andy’s Q4 housing market forecast and how to tell where prices are headed

Foreclosures, delinquencies, and why “distressed sellers” aren’t flooding the market

Why investors have “backed off” the housing market waiting for mortgage rates to dip

Regional housing markets that could see the best (and worst) home price performance

The rising popularity of assumable mortgages and the massive downside to doing one of these deals

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

Hear Our Last Episode with Andy

Read the October 2023 Mortgage Monitor Report

Archive of Past Mortgage Monitor Reports

Connect with Andy:

Work with Andy and His Team

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-152

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151: The Math Behind Mortgage Rates and Why They're Staying Put w/Redfin’s Chen Zhao Oct 20, 2023

Show notes

The Fed’s new “neutral interest rate” could mean pricier mortgages, less cash flow, and higher home prices for longer. After the great financial crisis, interest rates were kept in check, slowly sliding down for over a decade. But, since the pandemic, things have gone the opposite way. Mortgage rates have hit multi-decade highs, bond yields have crossed new territory, and we could be far from things returning to “normal.”

If you want to know the math behind the mortgage rates and understand what the Fed does (and doesn’t) control in a high-rate world, Redfin’s Chen Zhao can break it down for you. In this episode, Chen goes through the economic indicators tied to mortgage rates, how bond yields affect banks' lending power, why the ten-year treasury is at a historic high, and the Fed’s newest “neutral interest rate.”

We’ll also get into the potential effect of next year’s presidential election on mortgage rates and the housing market and what to look for to gauge where we’re headed. If you want to know where interest rates will go, Chen details the roadmap in this episode.

In This Episode We Cover:

The math behind mortgage rates and what causes them to rise and fall

The Fed’s new “neutral interest rate” and why mortgage rates could stay where they are for a LONG time

Bond spreads, how they affect mortgage rates, and why they’ve taken a massive leap

Reaching economic equilibrium and how the Fed plans to keep unemployment and inflation down

The 2024 presidential election and whether Democrats or Republicans could help/hurt the housing market

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

The Federal Reserve is Suddenly Doubling Its Forecast For Growth—But Will They Keep Hiking Rates?

Mortgage Rates Reach the Highest Point in 20 Years—How Much Higher Will They Go?

Connect with Chen:

Economists Corner

Chen's LinkedIn

Research

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-151

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150: Zillow’s Senior Economist on Why You DON’T Want Mortgage Rates to Fall w/Orphe Divounguy Oct 16, 2023

Show notes

Everyone wants low mortgage rates again, but getting there might be one of the most economically treacherous roads many have ever faced. The sacrifice needed to get interest rates down would be substantial and lead to severe effects throughout the economy and all of our lives. After you hear today’s interview with Senior Economist at Zillow, Orphe Divounguy, you’ll know exactly what we mean.

Orphe’s team tracks anything and everything to do with the housing market. From home prices to migration, mortgage rates, new construction, and more, their finger is closer to the housing market pulse than most. But, if you want an episode where we talk about home prices coming back down and rates finally falling, this isn’t it. Orphe brings on the housing market facts and forecasts a future many of us didn't think possible just a few months ago.

We’ll go over home price predictions, what could cause rates to finally fall, underrated affordable markets, recession risk, and how to get started investing in real estate during such a tough market.

In This Episode We Cover:

The one thing that could cause mortgage rates to fall (and the danger behind it)

Zillow’s recession forecast and why US economic growth might be impossible to stop

Higher home prices and how the supply lag has kept prices near all-time-highs

Rent growth and which types of real estate are already seeing a return to normal

The most affordable, underrated real estate investing market that won’t last long

Where Orphe is investing in real estate and his advice for getting started

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

Fannie Mae Expects a Recession as Mortgage Rates Continue to Climb

Rate-Locked Homeowners Nearly Twice as Likely to Not Consider Selling

Connect with Orphe:

Orphe's LinkedIn

Orphe's Research

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-150

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149: Agent Lawsuit Ends in Settlement & Why Dave Ramsey Thinks You Should Sell Oct 13, 2023

Show notes

The real estate commission lawsuit that threatened buyer’s agents’ income is coming to an end. The conclusion? There could be even more murkiness ahead, and agent commissions are far from future-proofed. This settlement could either have been a cash grab from the get-go or a way to end the “unfair” buyer-seller agent commission split. So, how will this affect buyers and sellers today, and will these lawsuits make a difference on your next home sale or purchase?

We’ve got the hard-hitting housing market headlines you need to hear about on this episode of On the Market. First, we’ll talk about RE/MAX’s settlement and the future for buyer’s agents. Then, we’ll uncover why exactly housing starts have started (no pun intended) to freeze and why apartment investors could be begging you to take land off their hands. And, if you’ve ever wanted your home to pay you money every month, the new “passive home” development has just what you’re looking for. But with a high initial purchase price, are the savings/profits worth the cost?

Finally, if you thought you were smart for house hacking, prepare for an ego-blow because Dave Ramsey wants YOU to know that subsidizing your mortgage is a move for LOSERS. Sell that investment property, buy your house in cash, and prepare some beans and rice for dinner! All that and more on this episode!

In This Episode We Cover:

The RE/MAX agent lawsuit settlement and what this means for real estate agent commissions

Too many agents, not enough housing, and why “change” is coming to the industry

Home construction numbers and why housing starts dropped to their lowest level in years

The “passive home” with such massive energy savings that utility companies will pay you to live

Dave Ramsey’s house hacking rant and why his investing advice doesn’t quite hit the mark

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

New Agent Lawsuits Could Have Profound Effects for Buying and Selling Homes

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-149

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148: Microchips, Chinese Real Estate "Rot," and a Global Economic Forecast w/The Motley Fool’s Bill Mann Oct 11, 2023

Show notes

The Chinese real estate crisis could mean much more for the global economy than you think. One economic giant falls, and other interconnected countries, like the United States, feel the shockwaves. As more and more bad news (or LACK of news) comes out of China, we have one question: how will our housing market, stock market, and government be affected? The Motley Fool’s Bill Mann is on to help answer.

Bill works as a “treasure hunter,” searching for underpriced but financially sound stock investments for all of The Motley Fool’s subscribers. As a result, Bill’s research goes far beyond the borders of the United States. He’s constantly looking at global markets and industries to see which could be on track for a meteoric rise.

In today’s episode, Bill walks us through China’s economic crisis, their “rotting” real estate, and what happens if they continue into a deflationary spiral. Then, we talk about Taiwan’s chip manufacturing monopoly and what would happen if a global conflict threatened this industry’s safety? Finally, Bill gives us a global economic forecast with his two cents on interest rates, the “economy of the future,” and the USD “wrecking ball.”

In This Episode We Cover

The spiraling Chinese economy and why their real estate is beginning to “rot”

Chip manufacturing and the most important technological industry you’ve never thought about

Taiwan’s semiconductor monopoly and why the US is going to great lengths to protect it

The USD “wrecking ball” and how a strong dollar could hurt global economies

One country that could become the “economy of the future”

An interest rate prediction and whether or not Bill thinks the Fed has any more room to hike rates

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums