963: BiggerNews: 6 Rules for Real Estate Investing in 2024 w/J Scott

Real estate investing in 2024 isn’t as easy as a few years ago. When interest rates are low, housing inventory is high, the economy is booming, and everyone’s happy, real estate investors can take considerably more risks with bigger payoffs. But now, only the most savvy investors are finding cash flow, appreciation potential, and wealth-building properties. So, with little hope in sight for lower rates or home prices, how do you ensure you’re building wealth, not getting burnt, in the challenging 2024 housing market?

If there’s one person who knows how to invest during tough times, it’s J Scott. He literally wrote the book on recession-proof real estate investing and has flipped, landlorded, and syndicated through booms, busts, and the in-between periods. Today, J is laying down his six rules for real estate investing in 2024, which he’s following himself to ensure his portfolio doesn’t just survive but thrive, no matter what the housing market throws his way.

First, we dive into the factors causing such a harsh housing market and whether J thinks home prices will rise, flatten, or crash. Next, J walks through the six rules for real estate investing in 2024. We’ll talk about appreciation potential, rising expenses like insurance and property taxes, the riskiest investing strategies of today, loans that’ll put your real estate deals at risk, and why you MUST start paying attention to your local housing laws. 

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In This Episode We Cover
The six rules for successful real estate investing in 2024 from a time-tested expert
Inflation, interest rates, home values, and why the housing market has significantly slowed down
What rising expenses like insurance premiums, property taxes, and labor will do to your rentals
The one thing you CAN NOT assume when analyzing real estate deals (big potential mistake)
Adjustable-rate mortgages (ARMs) and why J is avoiding these at all costs
Rent control, short-term rental regulations, and housing laws that could put your rentals at risk
And So Much More!

(00:00) Intro
(01:30) What Affects the Housing Market?
(11:20) 1. Don’t Bet on Appreciation 
(15:46) 2. Expect Higher Expenses, Lower Rent
(20:37) 3. Know the Risks of Flips 
(26:46) 4. Avoid Adjustable-Rate Loans
(28:48) 5. Buy What You Can Hold 
(33:15) 6. Pay Attention to Local Laws 

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-963
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