The State of Real Estate Investing—How Did We Get Here?

2025 is here, and the real estate market is showing signs of transition. In this episode, we explore the state of real estate investing as the housing market shifts from stagnation to recovery. With affordability, inventory, and new listings on the rise—and the Federal Reserve initiating a rate-lowering cycle—investors may finally see light at the end of the tunnel. But challenges remain. High borrowing costs, sluggish rent growth, and inflation continue to pressure investors, while regional disparities in appreciation rates highlight the importance of local market analysis. Join us as we break down key trends shaping the market, reflect on the recent past, and discuss why nimble and strategic investors can find incredible opportunities in 2025’s evolving landscape. Whether you’re looking for hidden value or preparing for long-term growth, this episode will help you adapt to the new era of real estate investing. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Is America shifting toward a culture of lifetime renting, or is this just a trend limited to major metro areas? In this episode, we explore the rise of “forever renters,” a concept gaining traction in affluent cities like New York and Seattle, where renting is normalized and sometimes even preferred. We dive into survey data suggesting a growing number of renters see homeownership as unnecessary for the American Dream—but is this the full picture? Keep reading the article here: https://www.biggerpockets.com/blog/renters-by-choice-becomes-growing-trend Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Can FHA loans be a stepping stone to your real estate empire? In this episode, we uncover the creative ways you can leverage FHA mortgages for real estate investing, even though they’re traditionally designed for owner-occupants. From house hacking multifamily properties to mid-term renting and flipping homes with 203(k) renovation loans, we’ll guide you through strategies to maximize your FHA loan’s potential. Keep reading the article here: https://www.biggerpockets.com/blog/you-can-rent-your-fha-property-short-term-but-with-a-medium-term-timeline Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode, we dive into a compelling comparison between rental properties and REITs (Real Estate Investment Trusts), uncovering six reasons why REITs may actually be safer investments than rental properties. From the power of diversification to the benefits of limited liability and professional management, we break down the key factors that make REITs a less risky yet potentially more rewarding alternative. Keep reading the article here: https://www.biggerpockets.com/blog/why-reits-are-safer-than-rentals Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

In this month’s market report, we analyze the shifting dynamics of the real estate market as 2024 came to a close. Nearly 60 major markets, including Raleigh, Salt Lake City, and Fort Wayne, experienced declines in home prices, signaling potential opportunities for investors. However, rising inventory and days on market didn’t lead to price drops everywhere, with some markets holding firm or even appreciating. We explore regional trends, highlight the top-performing and cooling markets, and uncover why this transitional phase in real estate presents unique challenges and opportunities. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Looking for a way to offset skyrocketing housing costs while generating extra income? House hacking might be your answer. From renting out a room to converting your basement or even building an accessory dwelling unit (ADU), this strategy lets you leverage your primary residence for passive income. This guide breaks down modern house hacking, exploring options like small multifamily units, shared living spaces, and ADUs. We’ll also cover the practical steps to rent out part of your home, including prepping the space, understanding landlord-tenant laws, marketing effectively, and drawing up a customized lease. Whether you’re new to house hacking or a seasoned investor, this comprehensive guide offers actionable advice to maximize your returns while minimizing risks. Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

When I first dipped my toes into the world of house flipping, I was filled with excitement and a fair share of naiveté. I had dreams of turning rundown properties into beautiful homes and reaping the rewards of my hard work.  But, like many aspiring investors, I faced my share of setbacks. I experienced the sting of failure, but I learned invaluable lessons along the way that helped me rebuild and ultimately thrive in this business.  If I could go back in time, there are key insights I wish I had known from the start. Here are five things I’ve learned through trial and error—lessons that could save you from the pitfalls I encountered. Whether you’re just starting out or looking to refine your approach, these insights will help you avoid the mistakes that can turn your next flip into a flop.  Keep reading the article here: Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The Raleigh and Charlotte, North Carolina, metros grew tremendously over the past five years, with a population growth of 11.53% and 8.81%, respectively (the U.S. average was 2.94%). Raleigh also had a 64.2% increase in its median price, while Charlotte experienced a 76.9% increase (the U.S. average was 46.9%). Keep reading the article here: https://www.biggerpockets.com/blog/north-carolina-could-be-the-next-boom-state Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate investing is one of the best ways to build wealth, but there’s a hidden trap that even seasoned investors fall into—it’s called poor bookkeeping practices that quietly drain profits and put portfolios at risk. You may have written deals on a napkin or put the receipt for purchasing materials in your glove compartment before, but that could leave you scrambling at the worst times.  The bookkeeping, accounting, and banking system you choose will determine whether you avoid these headaches or continually “eat” those small charges that add up like sneaky calories in your favorite late-night snack. I know I’m guilty of letting multiple little purchases get miscategorized, forgotten, or even worse—charged to the wrong property. Over time, these little slip-ups can cost you thousands, and the only one who ends up happy about that is the IRS. The crazy thing is that real estate taxes and accounting nuances can work in your favor—when things are correctly documented and categorized. But getting it wrong? Well, that’s like building a house without a blueprint—risky, expensive, and more than a little stressful. Let’s break down the five most common bookkeeping mistakes real estate investors make that can lead to thousands of dollars slipping through the cracks—and, more importantly, how to fix them before it’s too late. Keep reading the article here: https://www.biggerpockets.com/blog/investors-can-lose-thousands-by-not-bookkeeping-right Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

If you are lucky enough to have a spare room in your house that is not filled with random junk, congratulations—you may be sitting on some extra cash. The threat of a roommate eating your leftovers is not as high as the cash flow you can bring in, so let’s dive into how to turn your extra room into extra revenue.  Once you find a tenant, our friends from Baselane will be able to help you screen the tenant, help collect rent online, and mange all your rental finances with a business checking account and free bookkeeping software. This will save you 2-4 hours of work per unit per month. Keep reading the article here: https://www.biggerpockets.com/blog/the-basics-to-renting-out-one-of-your-rooms Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices