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I saw this article today and thought some of you might be interested.  Let me know your thoughts? You can call, text or email anytime. I would love to hear from you.

John Peterson

301-943-5535

ProfitableProperty@gmail.com

At the recent International Builders’ Show, economists from the National Association of Home Builders projected a housing market transition in 2026 from extreme seller advantage toward a more balanced environment.

New construction prices have already declined from peak levels, with builders offering incentives and reductions to move inventory. This increased competition is expected to pressure resale pricing in many markets, according to reporting by Realtor.com.

Inventory is slowly rising as homeowners who were “rate-locked” begin to list properties, creating more choices for buyers and more room for negotiation. However, affordability remains a major constraint due to elevated prices and mortgage rates. Rather than a crash, economists anticipate modest price softness and slower appreciation.

For investors in the Washington, DC metro area, this suggests a window where acquisition opportunities may improve while exit margins tighten. Strong job growth, government stability, and chronic housing undersupply should continue to support rents and long-term demand.

Key Takeaways — Fix & Flip Investors

Opportunities

• More motivated sellers and price reductions
• Less bidding-war competition than 2021–2023
• Ability to negotiate concessions and terms

Risks

• Softer resale prices may compress profit margins
• Longer days on market for renovated homes
• Buyers highly sensitive to monthly payment

Strategy Tip: Buy deeper discounts, control rehab costs, and underwrite conservative ARVs.

Key Takeaways — Buy & Hold / Cash-Flow Investors

Positives

• Persistent rental demand in a high-cost region
• Many households priced out of homeownership
• Strong employment base (government, defense, tech, healthcare)

Watch Items

• Property taxes, insurance, and maintenance inflation
• Local rent regulations in some jurisdictions
• Financing costs still elevated

Strategy Tip: Focus on durable cash flow today rather than appreciation assumptions.

The broader takeaway for investors is this: the housing market is not collapsing — it is recalibrating. Builders adjusting pricing, resale homes facing pressure, and affordability constraints all point to a market searching for equilibrium after an extraordinary run-up.

For investors, this creates both caution and opportunity. Pricing discipline, careful underwriting, and close attention to local supply trends will matter more than ever. Those who stay informed and flexible will be best positioned to capitalize on shifting conditions as 2026 unfolds.

John Peterson

301-943-5535

ProfitableProperty@gmail.com

We recently shared an Entrepreneur magazine article highlighting a new concept being offered to tenants: “Rent Now–Pay Later.”

While innovation in housing finance is worth paying attention to, it raises an important question for investors—does this ease affordability, or does it ultimately contribute to higher rents over time?

That question led me to look at a broader issue: Where is renting still more affordable than buying—and where is the gap widening?

Renting vs. Buying: The Big Picture
Recent data shows a major structural shift in U.S. housing economics:

• Renting is now cheaper than buying in virtually every major U.S. metro
• Bankrate reports that owning costs 36–57% more per month than renting across the 50 largest metros
• By 2025, every major metro flipped to rent-favoring, reversing the trend from 2021 when ownership often penciled better

Investor takeaway: This isn’t a short-term cycle—it signals structurally higher rental demand, especially from first-time renters and mobile households.

Markets with the Strongest Rent-vs-Buy Advantage

These cities show the largest monthly cost advantage for renters, keeping many households in the rental pool longer:

• San Francisco, CA – Ownership costs can exceed rent by more than 2×
• Los Angeles / Southern California – Significant premium to buy
• Seattle, WA – High acquisition and mortgage costs
• Austin, TX – Renting often ~30% cheaper than buying
• Phoenix, AZ – Renting materially undercuts ownership

What this means: High-cost coastal and fast-growth Sun Belt markets may continue to see strong rental demand and rent resilience, even if for-sale activity slows.

Markets Where Rent vs. Buy Is Closer to Equilibrium

These metros still favor renting, but the gap is much narrower:

• Detroit–Warren, MI
• Pittsburgh, PA
• Philadelphia Metro
• Cleveland, OH & Buffalo, NY

Investor insight: These markets may offer better long-term appreciation potential while still maintaining a stable rental base.

What This Means for Real Estate Investor

1. Sustained Rental Demand
   Large rent-vs-own gaps give tenants strong incentives to remain renters, supporting occupancy.
2. Delayed Homeownership
   Higher buying costs push would-be buyers to stay in rentals longer, reducing turnover.
3. Value-Oriented Market Opportunities
   Markets where the math is tight may present attractive rent growth plus appreciation scenarios.
4. Strategy Implications
   Multifamily and build-to-rent may outperform where buying is prohibitive
   Flexible payment models and rent-to-own concepts could gain traction—but may also apply upward pressure on rents over time

John Peterson

301-943-5535

I thought this article in Entrepreneur Magazine this month was fascinating and very relevant to what many of us are seeing on the ground.

As most of you know from firsthand experience, renting an apartment or single-family home has become increasingly expensive across much of the country. What caught my attention, however, was something I had never seen applied to housing before.

The article discusses companies that pay a tenant’s rent upfront and then allow the tenant to repay that rent in installments over the course of the month. We’re all familiar with “layaway” in retail and the now-common Buy Now, Pay Later model used in consumer goods, autos, and online shopping — but this is the first time I’ve seen that concept applied directly to residential rent.

And this is not a mom-and-pop operation. According to the article, this has already become a multi-billion-dollar industry, which tells us this isn’t a fringe idea — it’s responding to a real market need.

So why is this gaining traction?

The bottom line is simple: rents continue to rise, and many tenants — especially those with uneven paychecks or lower incomes — are looking for ways to manage cash flow without missing payments. I don’t see this pressure easing anytime soon.

From an investor and landlord perspective, there are clear pros and cons to be aware of.

On the risk side, there is concern that tenants may be rolling over rent obligations, which could lead to higher turnover or increased eviction risk if their financial situation deteriorates. As owners, it becomes more important than ever to understand the source of funds, how rent is being paid, and whether a third-party service is involved. Some real estate professionals also warn that these payment structures could ultimately support higher rents, making affordability even more challenging over time.

On the opportunity side, these services may expand the pool of qualified tenants, particularly in markets where affordability is stretched but demand remains strong. For some operators, thoughtfully allowing or even partnering with these platforms could improve occupancy while maintaining on-time rent collection — if properly underwritten.

The key takeaway: pay close attention to how rent is being paid, stay informed about these emerging payment models, and consider whether they represent a risk, an opportunity, or both within your own portfolio.

This is one more signal that affordability pressures are reshaping the rental landscape, and as investors, we should be watching these trends closely.

John Peterson

301-943-5535

In your day to day life you are probably walking right past opportunity because you are too laser focused on finding your next deal, or client, or project.

This Monday at WREIA let’s just call it “Making Money Monday”. I want to share 7 ways you could be making money in real estate.

Whether you are part time or full time.

Whether you are an agent or an investor.

Whether you are brand new or an old grizzled veteran.

Opportunity is out there.

Let’s take your existing skills and knowledge and convert it into extra profits for your business.

This Monday at WREIA let’s talk about making some extra income, right here in the DC area.

Please join me on Monday for the May WREIA meeting?

Grab a virtual reservation while you can and I will see you Monday at 7PM.

John Peterson

301-943-5535

In the competitive world of real estate, it’s not enough to have the knowledge and skills to close deals.

You need to surround yourself with the right professionals to succeed in today’s tough and ever-changing market.

In a fall of ’23 WREIA meeting we announced the next “live” phase of WREIA.
We called it “The Team of ’24”.

For a lot of people in our line of work, sitting behind a computer all day is – well – difficult.
We would love to be surrounded by real people who are passionate about this business, without all the “fluff” of traditional networking groups.

Networking groups are groups of like-minded individuals who come together to share ideas, strategies, and resources. In the real estate industry, these groups can include agents, brokers, mortgage professionals, appraisers, and other experts.

Remember – We mentioned that we will be kieeping our “Team of ’24” small and focused.

No matter where you are in your career you can benefit from the collective knowledge and experience of its members, expanding your reach and opportunities.

One of the most significant benefits of the TEAM is access to a vast pool of resources. Team of ’24 members will have access to exclusive tools, reports, and data that can help you stay ahead of the curve.

For instance, you can learn about new industry trends, discover emerging markets, or access information about the latest technologies and software.

Another critical advantage of Team of ’24 is the opportunity to build relationships with like-minded professionals. In real estate, relationships are everything. When you build a strong network of professionals, you can leverage their connections to expand your own.

You may also find mentorship opportunities, which can be invaluable in a field where the learning curve can be steep.

The Team of ’24 can also help you find new clients and increase your visibility. By joining the Team of , you can tap into a broader network of potential clients and referral sources. You may also have the opportunity to showcase your expertise by speaking at events or writing articles for another members newsletter or blog.

In today’s real estate market, where competition is fierce, the Team of ’24 could help you stay ahead of the curve. By keeping up with the latest trends, building relationships with like-minded professionals, and accessing valuable resources, you can set yourself apart from the competition and grow your business.

So, whether you are a seasoned professional or just starting in real estate, consider joining the Team of ’24. Surrounding yourself with the right professionals is essential to your success in today’s tough and ever-changing market.

Click Here to Sign Up.

Remember – our first virtual WREIA meeting this Monday January 22nd, 2024, at 7:00 PM.

The meeting will be a session focusing on “The 2024 Real Estate Forecast for the DMV and Beyond.”

But first – how about a little insight from the “pro’s” over at Zillow.

Zillow has their 2024 housing predictions posted online.

Some of the articles big take-aways for me:

It’s hard to argue with the facts – but some of their predictions are going to be wrong.

After decades in this business I can tell you this – NO ONE knows what will happen in 2024 when it comes to real estate.

You need to be ready – and be prepared – especially if you are thinking about buying or selling your primary or secondary homes.

2024 is going to be an exciting year for real estate. There is no doubt in my mind – we are going to need to be ready for what is about to happen.

Most people are not going to see it coming – and will be caught off guard.

So – join us Monday night as we kick off the new year!

Let’s get ready for the spring months ahead – and don’t get caught off guard!

BEFORE I GO…..

We just finished planning the WREIA calendar for 2024.

We are going to be focused on essential skills and practical strategies you can use in your business every month.

You asked – and we plan to deliver in 2024.

You wanted more lessons on what it’s really like to be in the market TODAY. We plan to share the gritty details.

You want more skill building – so you can be ready when the opportunity strikes.

You asked for more industry insights – we plan to open our network and introduce you to more people, the true professionals, who make a living in real estate.

Lastly – if you need help on a deal, I’m still just a phone call or text away. Let me know how I can help.

John – 301-943-5535

Your Key Takeaway:

Get ready for an exciting and knowledge-packed January WREIA meeting!

Here is a recent project that perfectly exemplifies the power of Stephen Covey’s timeless principle, “Begin with the End in Mind.”

This philosophy played a pivotal role in a recent real estate investment project I undertook in Maryland, and I believe it perfectly encapsulates the essence of profitable real estate investment.

As you know, “The 7 Habits of Highly Effective People” by Stephen Covey has been a cornerstone of effective personal and professional development. Covey’s second habit, “Begin with the End in Mind,” urges individuals to have a clear vision of their desired outcomes before they embark on any endeavor. I applied this principle wholeheartedly to my recent real estate investment, and the results were truly remarkable.

And – the property sale (it was sold in June) was the inspiration for the Oct. WREIA meeting Monday night.

The Maryland project involved a property in dire need of refurbishment and strategic updates. I meticulously planned every step of the investment, keeping the end goal in mind – to maximize the property’s value and appeal in the eyes of potential buyers.

As you can see in the photo collage:

Before and After: A stark contrast between the property’s initial condition and its final, fully renovated state. The transformative process underscores the incredible potential of a strategic real estate investment.

Strategic Upgrades: There were specific upgrades and improvements, such as modernized kitchens, renovated bathrooms, enhanced curb appeal, and reimagined living spaces, which significantly contributed to the property’s market value.

Market Appeal: The photos reveal how the property was strategically designed to cater to the preferences of potential buyers. It exudes warmth, functionality, and a lifestyle that many desire in this neighborhood.

In line with Covey’s principle, I was mindful of the end goal throughout the project, which was to sell the property at a premium and attract suitable buyers. As a result, the property not only met but exceeded those objectives. It sold quickly and at a price that reflected its true market worth.

And believe it or not – the work from home trend was a pivotal part of the sale. We will discuss more in detail Monday night. (I hope you join us!)

I firmly believe that embracing the “Begin with the End in Mind” philosophy is a fundamental pillar of successful real estate investment. It guides you to make informed decisions, prioritize key improvements, and ultimately achieve outstanding results. I can’t emphasize enough how crucial this principle has been in ensuring the success of my real estate projects.

The Key Takeaway:

The remote work trend is here to stay, and its impact on the real estate market is undeniable. As a real estate investor, staying ahead of this curve is crucial to maintaining a competitive edge and maximizing your returns. By strategically considering the needs and preferences of remote workers, you can make property improvements and investment decisions that align with this growing trend.

This month at the October WREIA meeting let’s go over a few things you need to keep in mind to stay in front of this trend and cater to the modern buyer or tenant in your properties.

Click Here to Register – let’s talk about the next steps we can all be taking when it comes to making money in real estate right here in the DC area and beyond.

Get ready for an exciting and knowledge-packed October WREIA meeting!

A Midsummer Dream Team Panel – Live for our July WREIA meeting.

This Monday let’s get a fresh perspective on the local DC real estate market from a few WREIA members and active real estate investors.

Join in as we talk to a few experienced investors and even listen in as we talk to a “new” investor with less than a year of experience in the investment “game”.

Attending a WREIA panel meeting is exciting and offers a whole list of benefits.

Starting with belief. A core of the WREIA experience is believing you can do this business too.

Listen in as a seasoned pro walks you through how they overcome their daily struggles and create profitable properties all over the DC and beyond. Nothing makes you believe you can do it like learning how it was done by someone who is active every day.

Don’t be surprised if you walk away with a million dollar insight.

Interactive meetings like WREIA mean you can ask questions at any time. Take advantage of the panel this month and participate!

Load up on some industry knowledge from a diverse panel – and choose the tips that you want to take away – then implement the same or a similar idea in your own business.

In other words – steal their ideas and make them your own! We encourage it!

Then Monday night at WREIA – let’s talk about the next steps we can all be taking when it comes to making money in real estate right here in the DC area and beyond.

Get ready for an exciting and knowledge-packed July WREIA meeting!

Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the July 2023 meeting Monday at 7PM.

Go ahead – grab a ticket. (And yes, there is still no charge to attend.)

This interview is full of some very intersting statistics. And the source is a business owner who owns more than 100 Thousand homes across America.

While I don’t agree with everything in the interview, the guest does point out the dire need for more housing across the country – and how great the demand for housing actually is.

It means that as a real estate investor – you need to be ready to find money from someplace other than a local bank. Most of the loans are going to people with high paying jobs, steller credit, and high down payments. Banks are protecting themselves.You should protect yourself too, and prepare yourself for the next 12 months. By being ready to finance a property outside of local banks when necessary.What happens when you have been looking for a “flip” property for 6 months and suddenly someone with 5 properties pops up and wants to sell rather quickly and get out of the business. What do you do then?If you’re not sure, or absolutely positive what you would do, then you need to join us Monday night for our next WREIA meeting this Monday.Then Monday night at WREIA – let’s talk about the next steps we can all be taking when it comes to making money in real estate right here in the DC area and beyond.

The topic for WREIA this month is: “What’s going on with financing?” Come join us! My sole focus for the June 2023 WREIA meeting is:Helping you understand financing optionswhen rates (and the economy) are wonky. Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.See you Monday! Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the June 2023 meeting Monday at 7PM. Go ahead – grab a ticket. (And yes, there is still no charge to attend.)