Market Insights: What's Going On With The Market?

I talk to a lot of folks who’ve owned their beach condo or house for 20+ years — and most of them tell me the same thing: “I’ll never sell it.”

And honestly, I get it. I’m doing the same thing with my properties.

Still, I’m always curious how people use their beach homes, so I usually ask, “Is it a rental, or do you get to use it?”

Most say, “I use it some, but it’s mostly a rental.”

Then I ask, “How are the rents doing?”

The answer is almost always “Great.”

From there, the conversation turns into how the rental income covered their mortgage, taxes, insurance, and maintenance over the years. And now — that property is completely paid off.

I love asking, “So you put some money down on this condo (or house) back in the day, and the renters paid for it the rest of the way?”

Their smile says it all. “Pretty much. And now it throws off a nice amount every year. I’ll never sell it.”

Here’s what’s wild:

• 30 years ago, the median condo price was $117,900. Today it’s $505,000 — a 328.3% increase.

• A single-family home back then was $127,500, and now it’s $817,500 — a 641.2% increase.

So not only did renters pay for it…
It’s appreciating.
It’s cash-flowing.
It’s now a legacy asset for their kids.

Pretty amazing when you think about it.

Here’s the thing:

Investing today feels expensive — and it is, kind of.
But that doesn’t mean it’s not smart.

I know a guy buying a $900,000 property right now. He’s putting $135,000 down (15%) and $100,000 into renovations.

Once it’s stabilized, the property is projected to cash flow over $70,000 per year after expenses — that’s about a 30% return on his cash.

And when the renovation’s done, the property will likely be worth around $1.1 million.

Let’s play that out:

• At some point, he can cash-out refinance, pulling out the $230,000 he originally invested.

• He’ll still be collecting rental income.

• The property will keep appreciating.

• In 30 years, it’ll be worth a lot.

• And renters? They’ll have paid for the whole thing.

That’s the power of real estate.
It’s not just about today’s market — it’s about building something that pays you for years to come.