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Rental Property Investing Update - January 8, 2025
Published: January 8, 2025
Off Market Properties
616 active off market properties posted by wholesalers, tired landlords and distressed sellers.
Private Lending
- DSCR loan interest rates: 7.69% (market), 7.49% (OfferMarket)
- Lowest DSCR loan quote today: 7.25%
- Lowest Fix and Rent loan quote today: 10.75% and 1.5 points
- Fix and Rent “BRRRR” loan: bundle your Fix and Flip + DSCR refi (no and low seasoning) for major savings.
Market Insights
Zillow’s prediction for the 10 hottest housing markets of 2025
- Buffalo, NY
- Indianapolis, IN
- Providence, RI
- Hartford, CT
- Philadelphia, PA
- St. Louis, MO
- Charlotte, NC
- Kansas City, MO
- Richmond, VA
- Salt Lake City, UT
Predicting S&P 500 Returns Over the Next 10 Years vs Rental Properties
Based on historical data and the current forward-looking price/earnings (P/E) ratio, we can expect annual returns over the next 10 years for the S&P 500 index to be near 0%.
Given the structural shortage of homes in most major markets, we expect continued upward pressure on rents and home values to support market-beating returns for investors that are able to opportunistically purchase at below market prices (i.e. off market, tenant-occupied, distressed).
Insuring Your Rental Property Against Wildfire Risk
The stories, images and videos coming out of Los Angeles this week are devastating. Our heart goes out to the wonderful people of LA and all those affected by the ongoing wildfire. Our prayers and appreciation goes out to the first responders and firefighters who are putting their lives on the line to save people and property.
Early estimates indicate well in excess of $50 billion in property damage and the total destruction of over 9,000 structures, many of which were beautiful homes which are stores of wealth. With support from local, state and federal (FEMA) agencies, LA will be rebuilt.
The stocks of major publicly traded insurance and reinsurance companies including Allstate, Chubb, Berkshire Hathaway and MunichRe are all trading lower on expectations of major losses. Major losses means insurance premiums will increase, placing more stress on an already fragile housing market as the cost of homeownership rises.
Be sure to review your homeowners and landlord insurance policies to make sure your dwelling coverage includes risks associated with wildfires. In insurance speak, make sure there are no wildfire exclusions.
Newly published insights for rental property investors:
- Buying Rental Property Out of State
- Turnkey Rentals
- MLS Rental Properties
- Off Market Properties
- Best ways to mitigate risk as a rental property owner
- Can a tenant run a business from a rental property?
- When lawn care is and isn’t tax deductible
- When storage expenses are and aren’t tax deductible
Archive of Rental Property Investing Updates
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🏠 Off market properties 💰 Private lending ☂️ Landlord insurance rate shopping 💡 Community & insights
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