Welcome to the Pocket List, investors 👋

Here’s what we’re getting into today…

• Congress is cracking down on Wall Street landlords

• What are the most profitable real estate markets?

• Your FREE pocket listing

Plus, a whole lot more.

Let’s make some money today, shall we?

First, let’s check in on mortgages…

Rates continue to move higher as evidence piles up that the Fed will keep interest rates higher for longer.

Yesterday, the Fed confirmed at its FOMC meeting that it would hold rates steady. We did get some good news, though. Fed Chair Jerome Powell said he doesn’t think there will be any rate hikes.

THE LEAD

Congress cracking down

I’ve got some good news, investors…

Uncle Sam might help eliminate some of your deep-pocketed competitors. You know, the ones that are coming in with all-cash offers and buying up entire neighborhoods of single-family homes sight unseen.

A bill is gathering steam in Washington that would make it harder for Wall Street and other well-funded landlords to gobble up single-family inventory.

The details…

• Dubbed the “End Hedge Fund Control of American Homes Act”… which doesn’t exactly roll off the tongue

• Would force institutional investors to sell their portfolio of homes to families over a 10-year period

• Most companies would be capped at 50 single-family rentals

This has been a hot-button issue in recent years. Local and federal officials claim that the practice is driving up prices and raising the barrier to homeownership. As if there weren’t enough things working against homebuyers.

A growing problem…

It’s not surprising that local officials (and neighbors) have taken notice. The percentage of single-family homes purchased by investors is growing, as is the portfolio size of those investors.

Institutional investors aren’t the only problem, either. “Medium-sized” investors with between 10 and 99 doors are growing rapidly…

Act now

Some state and local officials aren’t waiting around for Congress to act…

• Minnesota: a bill looks to limit ownership to 20 homes

• Ohio: a bill has been introduced that would tax large landlords so heavily that they would likely need to sell properties

• Texas: Governor Greg Abbott called for this to “be added to the legislative agenda to protect Texas families.”

Nebraska, California, New York, and North Carolina are all trying their hand at passing similar laws.

💭 Mr. Pocket Listing says… It’s already hard enough to be a landlord and to make money in investing. And this could be a major headache for investors looking to take their portfolio from “mom and pop” to the big leagues. More red tape is never good…

On the other hand, capping institutional players could even the playing field for investors with fewer doors.

What do you think?

Answer below, and I’ll share the results next week.

WHAT ELSE?

More headlines I’m keeping an eye on…

• Adjustable-rate mortgage demand surges to highest level this year as 30-year rate keeps climbing (Read)

• Warren Buffett's real-estate firm will spend $250M to get out of legal hot water (Read)

• Even If the Fed Cuts, the Days of Ultralow Rates Are Over (Read)

• Home prices soar even higher in February, despite higher mortgage rates, says S&P Case-Shiller (Read)

• As home sellers, buyers wait on a Fed cut, here’s how mortgage rates have impacted the spring housing market (Read)

Let’s get tactical…

• Tenant Not Paying Rent? Here’s What to Do (Read)

• I’m a Home Inspector: Here Are 7 Key Signs That a House Is a Money Pit (Read)

• Where to Invest in Real Estate Right Now (Read)

• Housing Market 2024: Which House Type Is the Best Investment? (Read)

• Think Passive Real Estate Is Safe? Here Are 9 Hidden Risks That Could Cost You (Read)

• ‘A Squatter and Her Goat Refused To Leave My San Antonio Home—This Is How I Got Rid of Them’ (Read)

• I downsized to an ADU I built in my Sacramento yard. I pay only $520 toward my mortgage and am saving up for my next home. (Read)

• Everything you shouldn't do during a home renovation (Read)

• Real Estate Investors: Use These Loans to Get Your Construction Project Across the Finish Line (Read)

Mr. Pocket Listing’s favorite property of the week (a guy can dream, can’t he?)…

PROPERTY TOUR

It’s time to get a pulse on markets around the country…

(1) Ocala, FL // Top 10 Housing Markets with Biggest Quarterly Increases in Profit Margins in Q1 2024 (Read)

(2) Cape Coral, FL // Housing supply surges by up to 50% in these metro areas — and many sellers are being forced to slash their asking prices (Read)

(3) Rockford, IL // The No. 1 Housing Market To Watch Is One Most Americans Probably Haven’t Heard Of (Read)

(4) Peoria, AZ // A+ Real Estate: See How Much It Costs To Buy a Home in the Nation’s Top 10 School Districts (Read)

(5) Bridgeport, CT // The Top U.S. Cities Immune to the Housing Market Malaise—Where Price Growth Is Surging (Read)

SOCIAL STUDIES

Just a little something before you go…

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One last thing…