REI INK

The Five Features Renters Crave

The Changing Landscape of Single-Family Rentals By Kori Covrigaru Zillow recently released its 2022 Housing Trends Report, and, boy, have renters evolved. Renters are going on fewer in-person tours, are more likely to have pets, care more about floor plans, and put a higher value on amenities than in previous years.  As the rental market continues to change, property managers and single-family rental investors need to know what renters are looking for in 2023. There are five key elements at play in today’s changing landscape of single-family rentals. Use these in your rental marketing strategy to ensure you’re ahead of the curve with your properties. Pet-Friendly Homes Renting to pet owners can be a great way to attract more renters and fill vacancies faster. When advertising your single-family rental, mention that pets are welcome along with any pet-friendly features in the house. This will increase your pool of potential tenants. Consider adding features such as pet doors or fenced yards, which will make it appealing for pet owners to rent your property. You should also have a policy regarding the pets allowed and any additional fees associated with renting to pet owners. Be sure to communicate this clearly, so there is no confusion when it comes time to sign the lease agreement. Finally, remember that your insurance provider may not cover some breeds, so do your research before accepting certain animals into your rental property. Pet-friendly homes are an excellent option for rental investors and offer an attractive amenity that can help increase occupancy and attract quality tenants. Smart Home Technology Smart home technology is increasing in popularity in single-family rental properties. It offers convenience and peace of mind for tenants and property managers. Tenants can use smart thermostats to adjust the temperature from their phones while also providing property managers with data on energy usage. The ability to control smart appliances remotely allows tenants to check if they left something running or shut off after use. Smart locks provide an extra layer of security for both parties and a way to grant access without having to meet up in person. Property managers can even monitor when someone enters or exits the premises through notifications sent directly to their phone. Smart home technology makes it easier for everyone involved in a rental property transaction. Tenants have more control over their environment and greater security; property managers have better insight into the unit’s usage and maintenance; and investors benefit from increased efficiency throughout the process. Safety Safety is always top of mind for families. Smart locks are an easy way to ensure that only the right people can access your property. You can program them with unique codes for each tenant and easily change them when tenants move out. Good lighting around the home’s exterior will also help deter unwanted visitors from entering your property after dark. Security systems provide peace of mind by monitoring activity 24/7 and alerting you if something suspicious occurs. Key Takeaway: Property managers and single-family rental investors should install smart locks, security systems, pet-friendly fencing, and smart home technology to keep their properties safe. Floor Plans Floor plans are an important tool for marketing single-family rental properties. They provide potential renters with a visual representation of the space they will live in and help them decide if it is right for them. Floor plans should include accurate measurements and any special features, such as fireplaces or balconies. Consider how tenants can make the most of the space when creating floor plans. For example, if they could easily convert an extra bedroom into a home office or playroom, highlight this feature on your floor plan to show its versatility. Don’t forget to include outdoor spaces like patios and decks so that tenants can get an idea of what their outdoor living experience would look like at your property. Floor plans also give tenants a better understanding of room size and layout before they commit to renting a property—which helps prevent misunderstandings down the line when move-in day arrives. Be sure to calculate each room’s size so that prospective tenants know exactly what they’re getting when signing up for your rental unit. Including detailed floor plans in your listing materials gives potential renters more confidence in their decision-making process by making it easier to envision themselves living in your property, ultimately helping you find great tenants faster. Floor plans are an essential part of rental marketing, providing a detailed overview of the property’s layout and features. With 3D virtual walkthroughs, you can now give potential tenants a better view of your single-family rental before they even step foot inside. Virtual 3D Walkthroughs Virtual 3D walkthroughs are an innovative way to showcase single-family rental properties. They allow potential renters to explore the property from the comfort of their own homes, without having to physically visit the property. This can be a great time-saver for renters and property managers. 3D virtual walkthroughs are becoming increasingly popular among single-family rentals because of their convenience and cost-effectiveness compared with traditional in-person viewings. Property managers now have access to powerful online tools that make showcasing their properties effortless. At the same time, tenants gain peace of mind knowing exactly what they’re getting into before signing on the dotted line. With the right combination of the features renters crave, you can create an attractive listing that will stand out from the competition and attract more qualified tenants. Are you a single-family rental property owner looking for an effective way to market your listings? PlanOmatic provides comprehensive photography, floor plans, and 3D walkthroughs that help showcase the beauty of your home. Our solutions will give potential tenants a detailed understanding of what they can expect from their future living space while making sure you maximize interest in your listing.  Contact us today to get started by visiting https://www.planomatic.com/.

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Home Prices In Opportunity Zone Redevelopment Areas Fall During Q4

Drop-off Matches Broader Nationwide Downturn By ATTOM Staff ATTOM, a leading curator of land, property, and real estate data, released its fourth-quarter 2022 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017 (see full methodology below). In this report, ATTOM looked at 4,119 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the fourth quarter of 2022. The report found that median single-family home and condo prices decreased from the third quarter of 2022 to the fourth quarter of 2022 in 56% of Opportunity Zones around the country and went down at least 5% in almost half. Those declines closely paralleled drops in neighborhoods outside the zones as prices fell across the broader U.S. housing market during the second half of 2022 following a decade of almost continuous growth. However, some signs emerged during the fourth quarter revealing that Opportunity Zone markets were withstanding the national market retreat better than other neighborhoods, just as they outperformed nationwide increases by some measures during the boom period. For example, larger portions of Opportunity Zones saw typical values rise by at least 10% both quarterly and annually compared to the rest of the nation during the last few months of 2022. In yet another ongoing sign of strength, median values were still up year over year in almost the same portion of Opportunity Zones as elsewhere around the country. “Home values inside Opportunity Zones are falling. But, on balance, they aren’t dropping any faster than in more well-off neighborhoods around the country,” said Rob Barber, CEO for ATTOM. “By a couple of metrics, they are even doing a little better. That speaks to the continued strength of Opportunity Zone housing markets and their potential allure for investors who still want to take advantage of the program’s tax breaks even in the current uncertain economic environment.” Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people. Without a doubt, typical home values in Opportunity Zones remained well below those in most other neighborhoods around the nation in the fourth quarter of 2022. Median fourth-quarter prices fell beneath the nationwide median of $321,500 in 79% of Opportunity Zones. That was about the same portion as in earlier periods over the past year. In addition, median prices were less than $200,000 in 53% of the zones during the fourth quarter of 2022, also about the same as in earlier periods. Considerable price volatility also continued in Opportunity Zones, as median values either dropped or increased from the third to the fourth quarter of 2022 by at least 5% in more than three-quarters of zones. That likely reflected the small number of sales in many zones. Still, the fourth-quarter price trends, while down, continued a pattern of Opportunity Zoneslargely keeping pace with the national market despite their location in some of the country’s most distressed communities. Over the past few years, price trends inside the zones matched or even bested nationwide patterns. That happened as a combination of rock-bottom home-mortgage interest rates and a historically small supply of homes for sale pushed up demand and prices throughout the U.S. As buyers with more-limited resources were priced out of many areas, they likely turned to lower-priced locations, including Opportunity Zones. Home prices have dipped in most of the country since the middle of 2022 as higher mortgage rates and consumer price inflation, combined with a faltering stock market and other forces, have cut into what buyers can afford. But the ongoing tight supply for homes for sale could help Opportunity Zones withstand steeper drop-offs. “These areas targeted for redevelopment tax breaks may be less vulnerable to taking a big hit if the market keeps dropping because they are still some of the most affordable markets,” Barber added. “The Spring buying season should say a lot about whether they can maintain their strength.” High-level findings from the report Median prices of single-family houses and condominiums declined from the third quarter of 2022 to the fourth quarter of 2022 in 2,116 (56%) of the Opportunity Zones around the U.S. with sufficient data to analyze, while increasing or staying the same in 44%. Medians were still up from the fourth quarter of 2021 to the same period last year in 2,414 (63%) of those zones. Both of those trends roughly followed national patterns. By comparison, median prices decreased from the third to the fourth quarter of 2022 in 58% of census tracts outside of Opportunity Zones, while remaining up annually in 65%. (Among the 4,119 Opportunity Zones included in the report, 3,801 had enough data to generate usable median-price comparisons from the third quarter to the fourth quarter of 2022; 3,862 had enough data to make comparisons between the fourth quarter of 2021 and the fourth quarter of 2022). In addition, measured year over year, median home prices remained up at least 10% in the fourth quarter of 2022 in 1,738 (45%) of Opportunity Zones with sufficient data. Prices rose that much during that time period in 41% of other census tracts throughout the country. Of the 4,119 zones in the report, 1,481 (36%) had median prices in the fourth quarter of 2022 that were less than $150,000. That was down from 39% of those zones a year earlier. Another 697 zones (17%) had medians in the fourth quarter of last year ranging from $150,000 to $199,999. Median values in the fourth quarter of 2022 ranged from $200,000 to $299,999 in 934 Opportunity Zones (23%) while they topped the nationwide fourth-quarter median of $321,500 in 856 (21%). The Midwest continued in the fourth quarter of 2022 to have the largest portion

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The Benefits of Relying on Real Estate to Fuel Your Retirement

One of the biggest misunderstood strategies for investing is investing with a Self-Directed IRA. In the United States, taxes are one of the biggest things business owners and entrepreneurs try to avoid at all cost. So how can you be smart, and invest legally but avoid taxes? On the episode we bring on John Bowens from Equity Trust Company to give us the breakdown of what Self-Directed IRA’s are and how powerful they can be to an investor. We also go over Traditional IRA’s, Roth IRA’s, Solo 401k’s and other types of investing accounts.

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Breaking Down Lease Options and Creative Finance

John Jackson is considered the nation’s premier authority on real estate lease options, and is often referred to as the “King of Lease Options.” Other nationally recognized real estate educators refer their students to John to learn his lease option systems. John started his lease option company, Leasing To Buy®, in 2003, and has since done over 600 lease option transactions, with his students having done hundreds of lease option transactions as well. John is also the ONLY educator that teaches Texas Lease Options. Real estate attorneys refer to John for education and training on the subject. Connect with John Jackson https://leaseoptionclasses.com/

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The Startling Future of Generational Wealth and Rent Cycles

Lacey Brutschy is one of the most influential real estate investors on social media today. She is a real estate development and residential sales expert based in the DFW area, and she is on the show today to help us better understand what’s happening in today’s market. Listen now to learn more about Lacey, the DFW market, and what we should be expecting based on what’s currently happening in the real estate world! Quotables “The goal that I think people should be thinking of is no longer whether or not the time is to get into the market because the time to get into the market is 3 days ago, it’s today, it’s tomorrow – because that’s the only way you’re going to build generational wealth.” “You just really have to know what you’re looking for, as far as places that we’ll see equity growth, which is really based off of location and whether or not the development has they’re own school system.” “Your goal is really to purchase a house that has as many bedrooms and bathrooms as you can afford, then you house-hack that with your friends.” “The opportunity is again, not in long-term rentals. It’s in mid-term, it’s in short-term, if done correctly.” Links Website: RCN Capital https://www.rcncapital.com/podcast Website: REI INK https://rei-ink.com/ Instagram: Lacey Brutschy https://www.instagram.com/lacey.compass/ Email: Lacey Brutschy lacey.brutschy@compass.com

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Mortgage Delinquency Improvement Across the Board in January, Uptick in Foreclosure Starts

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Black Knight, Inc. reports the following “first look” at January 2023 month-end mortgage performance statistics derived from its newly enhanced and greatly expanded McDash loan-level data set representing more than 60% of active mortgages nationwide. Loan-level detail on more than 200M active and historical mortgages has already made McDash the industry’s leading repository of servicer-contributed performance data. The vast population of active mortgages in the data set, now coupled with Black Knight’s eMBS agency securities data, also allow for more precise market sizing to better reflect the evolving mortgage landscape of the past several years – and of that to come. “McDash was already the mortgage and capital markets sectors’ go-to source for loan-level performance metrics on the majority of the market, contributed directly by the nation’s largest servicers,” said Ben Graboske, president of Black Knight Data & Analytics. “Mortgage data in McDash comes from a wide range of servicers, including both Black Knight MSP servicing clients as well as those using other servicing systems of record. Now at over 80 active contributors and counting, we’ve also significantly increased our coverage of nonbank servicers as well as those with smaller portfolios. Prior to this, visibility into these portfolios – representing millions of loans and a dynamic cross-section of the market – simply hasn’t been available at this level of granularity in public performance metrics.” Delinquencies were down across the board in January, with the overall national delinquency rate declining 10 basis points to 3.38% month over month, down 15.1% year over year. The number of borrowers 30-days late decreased by 46K (-4.8%), while 60-day delinquencies also ticked down slightly. Serious delinquencies (90+ days past due) continued to improve nationally (-4K), with such inventories declining in a large majority (44) of states. Florida – still dealing with the aftermath of Hurricane Ian – saw another 1.7K loans fall into serious delinquency. Foreclosure starts rose 17% in the month to 33K, marking the fourth consecutive increase, but remain 37% below pre-pandemic levels. Foreclosure was started on 5.6% of serious delinquencies in January, still 48% below the start rate seen in January 2020. Active foreclosure inventory rose by 2.5% in the month, and is now up 48K or 20% since January 2022, but remains nearly 20% below pre-pandemic levels. A total of 7K foreclosures were completed nationally in January, up 15.2% from the month prior, but remain nearly 50% below early 2020 levels. Graboske added: “Given the fundamental changes we’ve seen in the market’s makeup – even before the pandemic – and as the industry and wider economy move ahead into an uncertain future, this additional visibility couldn’t come at a more important time. Our role as a public provider of objective and unvarnished housing and mortgage market data and analysis is something we take very seriously. We’ve been through enough boom-and-bust cycles in the mortgage industry to understand just how critical this role is – to our industry, as well to the public, the media and the wider American economy.” For this month’s full First Look press release, including tables and trendlines, please visit us here. The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.blackknightinc.com/data-reports/ by March 6, 2023. For more information about gaining access to Black Knight’s loan-level database, please send an email to Mortgage.Monitor@bkfs.com.

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