Welcome to the Pocket List, investors 👋

Let’s make some money today, shall we?

First, let’s check in on mortgages…

The 411 on rates… We finally got some rate relief, thanks largely to improvements in the bond market driven by some better-than-expected economic data.

THE LEAD

The living dead

Unless you’ve been living under a rock (I wonder if rock neighborhoods have insufferably HOA boards too?), you’ve probably noticed that single-family homes are hard to come by.

This, of course, makes our job as investors more difficult.

Which means there’s an opportunity in properties that your competitors might be overlooking.

Meet “zombie property.”

Zombie property was a term coined during the 2008 housing crisis, which is a red flag in itself.

So what exactly is a zombie property?

• Almost always vacant

• In the foreclosure process… but not fully foreclosed on

Importantly, the bank never fully forecloses on the property. Likely because it could cost more to go through the process than it’s actually worth. And, as you might have guessed, after the owner gets a foreclosure notice, they up and leave.

This puts the property in a strange limbo. The bank hasn’t foreclosed, and the owner might not even know it’s still technically theirs. Hence, “zombie.”

Ok, but how many of those can there really be in the US?

According to ATTOM there are nearly 7,000 of these homes in the US today.

Here are the top 10 locations…

If you’re willing to take on major projects (which is probably being generous for a vacant home called a “zombie”), these could prove to be great flip or rental opportunities.

WARNING: the scary-sounding properties can be… scary

These aren’t without (major) risk. First off, you need to find them. Zombie properties are going to be off-market. Plus, you’ll need to do your research to figure out (and double-check) who actually owns the property. Once you do, the fun part begins… tracking them down. Can’t drop a note in the mailbox of a vacant home…

If you get that far, the real fun begins: a reno of epic proportions. These things tend to be in disrepair (remember how I said you can get them cheap?).

💭 Mr. Pocket Listing says… Keep it local.

You’re going to need to have boots on the ground if you’re investing in a “zombie property.” You’ll need to canvas neighborhoods, talk to realtors and investors, and put the word out to friends and family to be your eyes and ears.

Some real estate databases also indicate if a property is vacant. And don’t sleep on hiring a virtual assistant to scour images of properties that “look” vacant.

WHAT ELSE?

More headlines I’m keeping an eye on…

• US home prices to rise 5% this year, more modestly next: Reuters poll (Read)

• Mortgage ‘junk fees’ can add nearly $6,000 to the cost of buying a home. The Biden administration says it’s cracking down on the charges. (Read)

• Single-Family and Multifamily Production Headed in Opposite Directions Across Geographies (Read)

• The number of US homes for sale is slowly returning to normal: An ‘incredible trend,’ economists say (Read)

• Brace Yourself: The Price Per Square Foot of an Average U.S. Home Has Jumped More Than 50% Since 2019 (Read)

• More Renters Are Staying Put Longer (Read)

• A new American Dream? With home prices out of reach, 'build-to-rent' communities take off (Read)

• Landlords and investors in the rental space are thriving as soaring prices keep homebuyers sidelined, top real estate leader says (Read)

• Airbnb’s Secret Weapon to Fight State Laws: Its Hosts (Read)

Let’s get tactical…

• Data-Backed Solutions: Addressing the Top Real Estate Challenges of 2024 (Read)

• Keller Williams launches AI-powered real estate assistant (Read)

• No, Cash is Not King—You Can Do Way More and Way Better With Financing (Read)

• I’m a Real Estate Investor: 9 Red Flags You Should Look For Before Buying Property (Read)

• 2 Pros and Cons of Tapping Your 401(k) To Buy a Home — Is it a Smart Investment? (Read)

• The 7 Hottest Home Renovations Everyone’s Dying To Do This Summer (Read)

• Yes, mortgage influencers exist —here’s their top financial advice (Read)

• Scammers Tried to Sell Graceland. How to Prevent Your Home From Being Next. (Read)

• I’m a Real Estate Agent: Why Having the Money for a Down Payment and Mortgage Isn’t Enough (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) Seattle, WA came in at #2 // These 10 Big Cities Are Building the Most Multifamily Housing Units — Will It Drive Down Rental Prices? (Read)

(2) Breckenridge, CO was pretty shocking // America’s top 10 buyer’s markets—where you can still land a bargain below the asking price (Read)

(3) Memphis, TN is on the list // The 14 U.S. Metros Where the Number of Homes for Sale Is Bouncing Back to Pre-Pandemic Levels (Read)

SURVEYING

Last week, I asked, “What do you think is the best long-term investment?”

51% of you said, “Stocks” followed by… shocker… “Real estate.”

Here’s today’s question…

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One last thing…