Welcome to the Pocket List, investors 👋

Here’s what we’re getting into today…

• Is flipping worth it?

• The best places to buy single-family rentals

• What features do buyers value the most?

Plus, a whole lot more.

Let’s make some money today, shall we?

First, let’s check in on mortgages…

What’s driving rates this week?

• Rates made a big jump on Monday thanks to rising Treasury yields

THE LEAD

What you might have missed this week…

Awful, no-good, terrible…

… challenging.

Those are just a few ways to describe home flipping in 2023. And I’ve got the data to back it up…

• 2022: 436,807 single-family homes and condos in the United States were flipped

• 2023: 308,922 flips

That’s a 29.3% drop. The biggest since 2008. Friendly reminder: 2008 was the same year the housing market collapsed.

Unsurprisingly, profits fell too. Gross profit on the typical home flip fell to $66,000 in 2023. That’s down from about $70,000 in 2022.

💭 Mr. Pocket Listing says… As any experienced flipper knows, these thin margins can be wiped out by carrying costs that can account for upwards of 1/3 of the resale price. And for the inexperienced flipper… don’t say I didn’t warn you!

But it’s not all doom and gloom…

Every real estate investor knows making money on any deal comes down to one thing: location, location, location. Ok, that was three.

The same flipping report showed that there are still plenty of counties to make money in. These were the top 10…

What else Mr. Pocket Listing is reading…

• Best Counties for Buying Single-Family Rentals in 2024 (Read)

• SURVEY: Outdoor Features & a Laundry Room Among Most Wanted Features (Read)

• Which State Really Has the Lowest Taxes? This Is the True Cost of Local Levies (Read)

• The housing market is thawing as an increasing number of 'mortgage lock' homes go up for sale, JPMorgan says (Read)

• The 7 biggest home-staging mistakes people make when trying to sell their house (Read)

• A boomer who moved from California to Florida started a Facebook group to help friends make similar moves. 300,000 members later, guiding Californians to new states is his full-time job. (Read)

• Must-See Honesty: 9 Hilariously Truthful Home Tours on TikTok (Read)

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

DATA DUMP

For all the numbers guys and gals out there…

• +4.7% / Nationwide inventory is up nearly 5% vs. its February low (Read)

• 1/3 / More than 30% of sellers are slashing prices in Sun Belt cities (Read)

• 22 states / Buyers need to earn 6-figures to be able to afford a ‘typical’ home in nearly half of US states (Read)

SOCIAL STUDIES

Before we go, one last gift from Mr. Pocket Listing…

If you’re enjoying the Pocket List, make sure to share it with your friends and fellow investors. Send them here.

One last thing…