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    Where We’d Invest in Real Estate in 2024 if We Were Starting from Scratch

    enAugust 21, 2024
    What factors should be considered when starting to invest?
    Why might an investor choose to invest locally?
    How can moving to a new market benefit investors?
    What were Henry and Ashley’s regrets in investing?
    What red flags did Ashley identify in potential investments?

    Podcast Summary

    • Market research and personal perspectiveBoth market research and personal perspective are essential when deciding where to invest. While data can help build a portfolio effectively, personal experience and comfort level in a location also play a significant role.

      When considering where to start investing, both market research and personal perspective are crucial. While data such as housing market information, job growth, and economic data can help build a portfolio effectively, personal experience and comfort level in a location also play a significant role. Some investors, like Henry, may choose to invest locally due to familiarity and comfort, while others may look for opportunities in markets with promising economic growth. Ultimately, there's no single right answer, and the best market to invest in depends on individual circumstances and goals. BiggerPockets encourages the community to do their own research and share their insights for a chance to win free swag and recognition on the podcast.

    • Real Estate Investment in New MarketMaking the decision to invest in a new real estate market involves personal circumstances, financial situation, and potential for long-term gains. Building relationships and gaining market knowledge can lead to success.

      Investing in real estate, especially in a new market, can be a significant decision that involves careful consideration of various factors. While some people may choose to move to a new city for better investment opportunities, others may find success by staying in their current location and building their portfolio in their backyard. The decision to move or not should be based on personal circumstances, financial situation, and the potential for long-term gains. For those who are open to the idea, moving to a new market can offer opportunities for building relationships, gaining a deep understanding of the local market, and potentially achieving financial freedom. Ultimately, the most important factor is having a solid understanding of the market dynamics and making informed decisions based on that knowledge.

    • Local InvestingConsidering affordability, growth potential, ease of scaling, and personal experience can lead to successful local real estate investing. Eliminating areas prone to natural disasters is also important.

      Successful real estate investing often involves finding opportunities in one's own backyard, where appreciation, equity, and cash flow can be achieved. Investors may consider factors like affordability, ease of scaling, and personal experience when deciding whether to invest locally or in other markets. Ashley, for instance, chose to invest in her local market due to its affordability and growth potential. She also considered factors like extreme weather when making her investment decisions, eliminating areas prone to natural disasters. This approach allows investors to focus on opportunities that fit their unique circumstances and goals.

    • Real estate researchThorough market research is crucial for low-risk real estate investing with a limited budget. Consider multiple factors like extreme weather risk, rent price point, and local economy and population growth. Look beyond mainstream sources for market data and insights to increase chances of a profitable investment.

      When it comes to real estate investing with a limited budget and a desire for low risk, thorough market research is crucial. The speaker shared their experience in selecting Erie, Pennsylvania, as their investment market based on factors such as low insurance costs, stable unemployment rate, and diverse rental strategies. They emphasized the importance of considering multiple criteria, including extreme weather risk, rent price point, and local economy and population growth. Additionally, they highlighted the value of looking beyond mainstream sources for market data and insights. By combining these factors, investors can increase their chances of finding a profitable and sustainable investment opportunity.

    • Real Estate Market FactorsConsidering local economy, job market, rental market, and availability of deals when investing in real estate can lead to profitable opportunities in markets like Tuscaloosa, AL, with strong economies, affordable home prices, and good rental yields.

      When investing in real estate, it's essential to consider various factors beyond just affordable home prices. These factors include the local economy, job market, rental market, and ease of finding properties. Tuscaloosa, Alabama, was identified as a potentially safe and profitable market due to its strong economy, affordable home prices, and good rental yields. The presence of large employers like Mercedes Benz and Near Core Steel, as well as the University of Alabama, contribute to the area's economic stability and rental demand. Additionally, the availability of deals and the quality of life in a familiar market were also significant considerations. However, it's important to note that even a seemingly good deal requires thorough research before investing. The availability of deals and the ease of establishing a team in a new market can significantly impact an investor's success.

    • Real Estate Investment Markets ValueConsider job growth, unemployment rate, and price-to-wage ratio in addition to median home prices when evaluating potential real estate investment markets. Oklahoma City, Oklahoma, offers a good value due to its impressive job growth, low unemployment rate, and reasonable housing prices.

      Analyzing potential real estate investment markets involves considering various factors beyond just median home prices. Ashley, Henry, and their guest discussed creating a new metric to determine which markets offer the best value for investors based on salary and housing affordability. The guest, a full-time worker, prioritized markets where a year's salary could buy an average home with minimal leverage. The chosen market was Oklahoma City, Oklahoma, due to its impressive job growth, low unemployment rate, and reasonable price-to-wage ratio. The hosts encouraged listeners to analyze the provided data set and consider overlooked markets like Oklahoma City for their investment opportunities.

    • Oklahoma City investmentAffordable housing and growing tech industry make Oklahoma City an attractive investment market, but personal advantages and market trends should be considered before investing.

      Oklahoma City offers affordable housing prices and a growing tech industry, making it an attractive market for investment, especially for those in the tech sector. However, it's essential to consider personal advantages and goals when choosing a market, as what works for one person may not work for another. Henry and Ashley shared their regrets of missed opportunities in their respective markets, emphasizing the importance of analyzing market trends and being prepared to act when the time is right. A red flag for Ashley is high crime rates and unfavorable laws and regulations, while Henry looks for landlord-friendly states when considering buy-and-hold strategies. Overall, the discussion highlights the importance of thorough market research and personalized investment strategies.

    • Real Estate Investment FactorsConsider population growth, job market, personal experiences, and researching lenders before investing in real estate markets. Always consult with advisors and only invest what you can afford to lose.

      When it comes to investing in real estate markets, there are several key factors to consider. Red flags such as population decline and jobs shifting overseas can indicate potential issues. However, investing in areas where people enjoy living is a strong consideration. Personal experiences, like owning a desirable car, can also be considered a splurge. It's important to do thorough research and consider all factors before making an investment. Additionally, finding an investor-friendly lender is crucial for a successful real estate investment. Remember, every investment comes with risk, so it's essential to consult with qualified advisors and only invest what you can afford to lose.

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    BiggerNews: Have the Airbnb Bans Backfired on Big Cities? w/Taylor Marr

    BiggerNews: Have the Airbnb Bans Backfired on Big Cities? w/Taylor Marr
    Are Airbnb bans actually hurting renters, homebuyers, and your local economy? The truth doesn’t seem so obvious, but new data shows the unintended consequences of banning Airbnbs and short-term rentals, especially in big cities. To get a take from someone inside the industry and with plenty of data to share, we invited Taylor Marr, Senior Housing Economist at Airbnb, to the show to explain how Airbnbs affect the economy, affordability, and housing supply. For years, there have been claims that short-term rentals take away housing supply from renters and homebuyers and, as a result, inflate rents and home prices in nearby areas. But new data is saying something very, very different. Today, Taylor talks about how Airbnbs and short-term rentals change a local economy, the amount of money this type of local hospitality provides to small businesses, and why affordability ISN’T improving in areas where Airbnbs are banned. We’ll also discuss the age of “experiences” and how hosts can earn more by catering to a new kind of traveler willing to spend. Do you have a short-term rental or want to make money with one in the future? Then don’t miss this episode! In This Episode We Cover: A short-term rental market update and how Airbnbs are faring in 2024  Airbnb supply and whether or not the short-term rental market is oversaturated  Tips for hosts to take advantage of “experiences” and make more money from their vacation rentals  The $80B impact Airbnb has on local economies and the real result of banning them  How Airbnb is working with local governments to IMPROVE affordability and tourist spending   And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Follow Taylor on Twitter Get Fully Customizable Insurance Coverage for All Phases of Occupancy on One Monthly Schedule and Bill Ready to Invest? Grab the Book, “Short-Term Rental, Long-Term Wealth” Find an Investor-Friendly Agent in Your Area See Dave at BPCON2024 in Cancun! Airbnb Bans Only Make Tourism More Expensive. Just Ask New York Connect with Dave (00;00) Intro (02:33) 2024 Housing Market Update (05:52) Effects on Short-Term Rentals (09:47) Airbnb Supply Update (11:16) Are Airbnbs Oversaturated? (14:07) The Age of "Experiences" (16:43) How Airbnbs Impact Local Economies (25:05) Side Effects of Airbnb Bans (34:30) Tips for Investors Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1008 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices