2024 presents big opportunities 💰

It’s Monday! You know what that means… 3 new stories to start your week!

• When this recession will end (experts disagree!)

• Tax tips to maximize your rental returns

•  Florida cities to throw out of your vacation bucket list

• 🔥 Deal of the Day! 🔥: 4 bd | 5 ba | Sevierville, TN

When Will This “Recession” End?

The winds of change are blowing through the real estate market. As we move into 2024, savvy investors need to know appreciation is slowing but prices will likely still climb another 3-4%. Mortgage rates are also topping 6% and expected to hold around 6.5% for most of next year as the Fed continues rate hikes. Time to lock in low rates is running out.

On the demand side, millennials are flooding the home buyer market in force right now. Over 50% of mortgages went to this massive generation last quarter as they hit peak home-buying age. Generation Z is also jumping into housing in numbers.

Supply is still lagging severely even as builders play catch up. Construction faces issues like labor shortages and supply chain disruptions. Housing starts are only expected to rise 5% annually – not enough to satisfy the swelling demand.

Commercial real estate faces a reckoning ahead as remote work solidifies and e-commerce grows. Office and retail will bear the brunt while industrial and multifamily remain bright spots.

The market always has risks but 2024 presents big opportunities for savvy investors ready to act. Mortgage rates and appreciation won't stay this low for long. Now is the time to stake your claim in real estate before it becomes even more expensive to buy in.

2024 Tax Tips for Savvy Landlords

Tax season brings both opportunities and obligations for rental property owners. As the March deadline to file annual returns approaches, landlords should review deductions, depreciation, and other tax-saving strategies to maximize your bottom line.

Mortgage interest, property expenses like maintenance and utilities, professional services, and depreciation are all deductible from your rental income. Good record keeping is key to properly claim these deductions, especially for depreciation which is based on the property's cost and improvements.

Depreciation deserves special attention as a valuable tax shield. Using IRS tables, you can deduct 3.636% of your property value (minus land) annually for 27.5 years with the Modified Accelerated Cost Recovery System. But maintain thorough documentation and beware recapture taxes if you sell.

Several other tips for landlords:

• Reconcile 1099 forms for rental income to avoid double taxation

• File annual D-30 and FP-31 tax returns to stay compliant

• Pay estimated taxes if expecting a balance due to avoid penalties

• Consider extending your filing deadline if more time is needed

The tax code offers major benefits to rental owners but the complex details can trip up the unprepared. Consult a tax pro to maximize savings and avoid issues. Leverage their expertise to make tax season a financial win. Don’t hire cheap on your tax pro. I’ve made that mistake a few times and it has cost me SO MUCH MORE in the long run.

Worst Places in FL for Families & Retirees

Florida offers endless sunshine but some areas come with heavy clouds for families and retirees. High costs burden tight budgets. Stifling heat and humidity sap health and energy. And lurking crime leaves many feeling unsafe.

Several Florida locales check all the wrong boxes. Places like Pahokee suffer high poverty and unemployment with few jobs beyond seasonal harvests. Rural areas can lack infrastructure and entertainment options.

Bigger cities bring bigger problems. Miami boasts alluring amenities but carries massive housing costs and an outsized crime rate. West Palm matches soaring expenses with safety concerns exceeding national averages.

Mid-size metro areas disappoint too. Fort Pierce couples economic malaise with shaky security. Nearby Ocala wilts retirees with oppressive warmth and limited senior activities.

Even Orlando’s attractions can’t offset issues for families. With below-average incomes comes above-average crime. Public schools fail to make the grade.

Before chasing Florida dreams, research thoroughly to avoid nightmares. Analyze budgets, environments, infrastructure and safety. Moving to a tropical paradise loses luster if families struggle or retirees languish. Pick places promoting prosperity over problems for your next chapter.

🔥 Deal of the Day! 🔥

Address: 2204 Legend Dr, Sevierville, TN 37876

This cabin offers a perfect blend of luxury, comfort, and convenience, featuring spacious accommodations with 4 bedrooms and 4.5 baths, spectacular views of Mount LeConte, and a plethora of entertainment options including video games and a theater room, making it ideal for large families or groups seeking a memorable retreat near Gatlinburg, Pigeon Forge, and Sevierville without the hassle of winding mountain roads, and its strong rental performance underscores its appeal as a lucrative investment opportunity.

Airdna data:

Estimated monthly payment: $6,826/month

Estimated monthly revenue: $9,158/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

Stay tuned tomorrow for more rental property insights and opportunities! Until then, dream of ocean breezes and don’t get scortched.