Soon-to-be new tenant at the Parnes household

David here 👋 Well, I’m about to be outnumbered, three-to-one. My wife Adrian and I are thrilled to announce that we’re expecting our second baby girl! I undoubtedly am the proudest husband and father on this side of the pond. So come this May, I’ll have three bosses: my wife, my daughter, and my next daughter! And I still have to work with James every day! Pray for me, please.

Being a dad twice over means I have to be even more careful with how I spend my time. More so than ever before, it’s all about work-life balance. Real estate is an amazing business because it gives us the opportunity to find that balance. We can own our work, or let our work own us. But for my family, I’ll do my best to choose the former!

    -David

The Top 10 cities for vacation rentals

The vacation rental market is on fire. In Q3 of 2021, Airbnb recorded its highest earnings to date with a net income four times larger than in 2020. If you’re looking to invest in a short-term rental property, the first thing to do is find the location that will give you the biggest ROI.

With that being said, AvantStay recently ranked the best U.S. travel destinations for short-term rentals. Here are the top ten cities with the best short-term rental ROI, and their median home prices:

1. Joshua Tree, CA - $400,000
2. Temecula, CA - $685,000
3. Smoky Mountains, TN - $820,000
4. Cape Coral/Captiva, FL - $360,000
5. Charleston, SC - $429,000
6. Savannah, GA - $255,000
7. Coachella Valley, CA - $530,000
8. Sarasota, FL - $385,000
9. Palm Springs, CA - $600,000
10. Austin, TX - $550,000

Our take

Short-term rental properties are a fantastic investment IF your client has a trustworthy management company. Someone they know will maintain their place to the highest, 5-star-worthy standards. Otherwise, their source of “passive income” will become their full-time job! 

Busting the myth about iBuying?

Last year, there was a lot of talk about iBuying (short for instant buying). It’s the practice in which companies use tech to buy houses quickly through cash-only transactions. When Zillow pulled out of the market, people started to think it was just a passing trend.

Well, that may not be the case. While the market is still small, the growth has been rapid. In 2021, iBuyers bought 1.3% of homes, almost 80,000 properties. That was double the iBuying activity of 2020. 

Recently, iBuying has started to move out of smaller markets and into major markets like Los Angeles and San Francisco. According to Inman, this means that profitability for an iBuying company could be right around the corner.

Our take

While the iBuying model is gaining some traction, it’s not right for everyone. If your clients are tempted to ditch you for an iBuyer, tell them real estate is a personal experience. You need a true advocate when it comes to negotiations, inspections, and market intel. All the AI in the world can’t beat having a real live human being in your corner. It’s called “real” estate for a reason! 

Horton hears an opportunity

D.R. Horton, the largest homebuilder in the nation, announced plans to put over $1B into building thousands of new single-family rentals across the country this year. The company expects to bring in over $700M in revenue as these properties are sold to investors and operators. And Horton isn’t alone. Many mega-builders, including Taylor Morrison, Highland, and Ashton Woods, are rushing into the booming single-family rental market. 

Our take

When the big guys are pouring money into a market trend, you should take notice. They’re investing a billion dollars! That just goes to show their massive confidence in single-family rentals. And this is good news for us. Any kind of market expansion means more opportunities to help our clients find their dream place! 

Schematics 

The news that just missed the cut

• Why some millennials are now regretting their fixer upper
• Can’t afford virtual real estate? Get a metaverse mortgage
• The pros and cons of buying an old house
• The not-so-picture-perfect side of running a mobile-home-park 
• Find out why Houwzer just raised $118M in funding

Foundation Plans

Advice from James and David to win the day

This business is all about people. Here’s how you make the most of every client relationship: 

• Treat every buyer like they’re your biggest buyer. You never know who you’re dealing with. Act like they’re a multi-million dollar client, because they just might refer you to one!
• You don’t have to cater to a**holes. You have the freedom to choose your clients, so why not choose ones you actually enjoy working with? 
• Put service first. This is a service-oriented industry. Do the best you can do for every client of every size. 
• Maintain your relationships! Your small clients today may be your wealthiest clients in a decade. 👏 Do 👏 Your 👏 Follow 👏 Ups! 

Q&A

You asked, we answered!

Q: What are some tips for finding the right brokerage? Are you being interviewed… or are we supposed to be interviewing them?

- Jennifer M., Michigan

A: It should be a little of both, really, because brokerages aren’t one-size-fits all. It’s a bit like buying a car. One car isn’t necessarily better than the other, but it might be a better fit for you, your budget, and your lifestyle. You know your personality best. In your interview, ask the questions you need to know to find the right fit for your workflow.

Ask us anything (about real estate!) here. 

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

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Have a great weekend.

- James and David