According to the battleground polls, JD Vance’s debate performance solidifies a Trump victory.  This will  give a short-term economic boost through mid-2025.

However, I am beginning to see a little pushback towards higher rents.  Tenants are getting somewhat pickier in their demands.  I’m glad I keep them a little lower.  It helps the Tenant a little, and I am okay with that, but I also have less turnover.  Some of the municipalities have raised their taxes though, so you’ll need to claw that back eventually.

The deals are far and few between for a decent home.  For a good amount of work (e.g. cabinets, bathrooms, full flooring) you’ll get a conservative 8.5 cap and the equity bump is minimal at about 10%, and who knows how long you’ll maintain that comfortable equity margin.  It could evaporate overnight in a bad economy. 

Rates don’t have to go down.  So the landlords that bought 100s of homes on adjustable debt may get caught flat-footed.  This would actually be good for the affordability of housing, as most are looking at the wrong side of the equation in terms of housing affordability.  A banking crisis or surge in rates would help affordability by taking the easy money out of the system.  Is this why Warren Buffett is selling BofA stock?  Is this 2006 or 1927?

The applicants I’m getting are comfortable in their jobs, and most of those moving out are purchasing homes.  This is a healthy economy.

But I’d be a little more risk averse in the SFR (single family rental) real estate world.  A T-Bill still gets you about 4.75%.  That’s about what a lot of the money markets were paying, and you don’t have any calls for leaky toilets.