Welcome to the Pocket List, investors 👋

Let’s make some money today, shall we?

First, let’s check in on mortgage rates…

The 411 on rates… Last week’s inflation data finally helped rates come down below 7%. They’ve hovered in the same range for much of the past week.

THE LEAD

Ok, hear me out… a national rent cap could actually be a good thing for investors

The nationwide rent cap proposal by the White House can’t hurt you (most likely).

Wait, what rent caps?

During the Presidential debate, which was largely overshadowed by his performance, President Biden hinted at a nationwide rent cap on large landlords.

The first-of-its-kind national rent ceiling would force landlords to cap rent increases at 5% per year… or forfeit tax breaks (spoiler: landlords would rather give up their firstborn than their tax breaks).

~20M rental units across the nation would be impacted.

Now, here’s why you (probably) shouldn’t be worried…

For starters, this would literally require an act of Congress. Chances are slim to none that this makes it through Congress ahead of the election. It would have to pass the GOP-controlled House and get a supermajority in the Senate. Did I mention rent caps are super divisive?

But for sh*ts and giggles, let’s assume it could make its way through Congress

There’s some fine print to understand…

Like how it only impacts owners with 50 properties or more (you know, the “wALl StREeT LaNDlOrDS”). And it will only last for 2 years… for now. Not to mention, new construction or major rehabs are excluded.

For investors like you and me, this could actually be a good thing. Hear me out…

Most of us have fewer than 50 doors, which means we won’t face the same constraints. Hell, some big landlords might even offload desirable properties if the market no longer makes sense for them.

But the biggest impact could be the lack of new builds. I know what you’re thinking… “But Mr. Pocket Listing, it doesn’t impact new builds, and it’s only for two years.”

Well, let me let you in on a little secret about government regulation… it tends not to go away after it’s implemented. Plus, those new builds become existing inventory pretty quickly…

It could force some builders to hang up their work boots, which could make your property more valuable and your cash flow even more juicy.

💭Mr. Pocket Listing says… Rent caps being implemented on a national level is about as likely as us ever seeing 2% interest rates again in our lifetime. Sorry, renters…

WHAT ELSE?

More industry headlines I’m keeping an eye on…

• Share of Smaller Lots Is at New High(Read)

• ‘Massive’ housing bubble about to burst in this US region, warns a real estate expert — see where (Read)

• Evictions Surge in Major Cities in the American Sunbelt (Read)

• What happens to the housing market when mortgage rates finally come down? (Read)

• Investors Keep Faith in America’s ‘Apartment King,’ Even in Tough Times (Read)

• Real Estate Stocks Soar to Best Day of Year on Rate Cut Bets (Read)

• More builders slash home prices as confidence in the market falls to seven-month low (Read)

• The housing market, explained in 6 charts (Read)

• US Housing Starts Increase on Pickup in Multifamily Construction (Read)

DIY

Let’s get tactical…

• The Resident Turnover Challenge: 5 Retention Strategies for Single-Family Rentals (Read)

• Is it a wise move to buy a property you eventually want to live in and rent out until you do? (Read)

• Top 5 Alternative Investments for Real Estate Investors in 2024 (Read)

• ‘Rentvesting’ can be ‘a good way to get into the property market,’ economist says. Here’s how it works (Read)

• Insurance Companies Are Using Drones To Monitor Homes — 4 Things They’re Looking For That Could End Up Costing You (Read)

• Trouble Selling Your House? 9 Ways To Improve Its Resale Chances (Read)

• Is short-term rental arbitrage (STRA) a good model? (Read)

• A Slew of New Rental Laws Is Determining Who Landlords Can Rent To (Read)

• The Incredible Shrinking U.S. Home—Including One Standard Feature That Is Fading Fast (Read)

• 8 Ways Neighborhood Data Influences Property Values and Real Estate Decisions(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) These 11 Markets Used to Be America’s Hot Spots. Now They’ve Gone Cold. (Read)

(2) Real Estate Investors Are Snapping Up a Record Share of Homes—Especially in These 5 Affordable Cities (Read)

(3) Top 10 U.S. States Posting Midyear Declines in Foreclosure Filings (Read)

SURVEYING

Last week, I asked, “Hire a property manager or manage yourself?”

56% of you use a property manager.

Here’s today’s question…

Did you take the Q3 survey (and earn a chance to win a $50 gift card)?

No?! Take the survey here.

If you’re enjoying the Pocket List, make sure to share it with your friends and fellow investors. You can send them here to sign up.

One last thing…