The “Delta Opportunity” for Investment Property Right Now

If you know people in your sphere of influence that own investment property, I've got some good news. Also, if you own an investment property, I've got good news. And if you're trying to sell investment property, I've got good news:

The investment property side of our business is going through a real resurgence right now. We knew during COVID they got kinda hit. We know the eviction moratoriums made it really tough for them. But now we're starting to see people come back out of that.

So here's a few good numbers in that arena that come from us from the NAR economist blog:

Two of them are dealing with absorption rates. Absorption rates, meaning how many units are being absorbed by the market.

In Q2 and Q3 of this year, 700,000 units were absorbed by this market. It's a lot of units, but completely instantly absorbed by the market.

Vacancy rates have fallen in 2011-ish from 6.9 back then all the way down to 4.6 now. That's a nationwide number, but when you drill into most markets that I teach in, it's much lower than that. In my market it's zero. But in other markets, it might be 1 or 2%.

But the good news overall is vacancy rates are coming down.

Here's the other piece of good news is that rents are coming up. Rents are astronomical — it's a vertical line guys. We know during COVID rents went down because of the eviction moratorium and things like that. But rents are vertical.

Right now, people are getting 11.4% more money than they did for the same unit a year ago.

So huge run up in rental prices, which is a great opportunity for anyone that's looking at properties and they're basing those sales prices on last year's rent.

The last year's rent creates the cap rate. And you're looking forward and saying, "Hey, maybe I can increase the rents, which would increase my returns."

There is what we call the "Delta Opportunity," a huge opportunity for smart investors to take advantage of.

People ask me if I'm still buying real estate.

I bought more real estate in the last 12 months than I've bought my entire life.

So yes, I'm buying real estate. I believe in the market right now. And you should too.

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