Home price momentum, how the rich avoid taxes, and the World Happiness Report
Greetings, investors!
First, some quick personal updates. In the last month, I’ve welcomed numerous visitors to “RIA Winter Headquarters” down at our place in Florida. My parents visited in March, and then in early April I joined my brother and his family for my nieces’ spring break, which was split between Disney World and our place.
The ability to fully own my schedule and spend this time with loved ones is one of the most meaningful perks of my current rental-property-enabled lifestyle — I won’t include photos of them to protect the innocent, but here’s a sampling of what we enjoyed on the Disney trip:
But enough about me, on to the Roundup!
Tax season arrives, but rich people aren’t bothered
Hopefully you’ve completed your taxes by now, and you’re in line to get a nice refund. (Actually, it’s optimal to OWE taxes at the end of the year, as long as there are no penalties or interest due. But it sure doesn’t feel that way, does it? I still feel like I’m winning if I get a tax refund, even though I know better.)
Which age group pays the most taxes? None of us like taxes, but middle-aged people pay the highest rates, and the largest total amount. (Dammit, that’s me!) Across all age groups, though, a majority of people agree that workers are over-burdened with taxes, while rich people and corporations don’t pay enough.
In fact, this belief has been broadly held by a large majority of Americans for a long time. Recent polling (such as this) suggest that somewhere between 65% and 80% of Americans support raising taxes on corporations and the wealthy.
Despite this, Congress (in partnership with the Trump administration) has done exactly the opposite, significantly lowering taxes on corporations and the wealthy with the 2017 Tax Cuts and Jobs Act, and then again in 2025 by extending those provisions of that law. Rich people and corporations don’t want their taxes raised, and they wield a lot of influence in Washington.
But when it comes to taxes, how good to the rich have it, really? Quite good, though this depends a lot on what kind of rich you are. If you’re a corporate executive who makes a high 6-figure salary, you pay quite a bit. But if you’re a tech entrepreneur and most of your wealth is in the form of stock, you can pay almost nothing.
In an excellent recent podcast, Ezra Klein digs into all this, including the “strategies” used by the wealthy to evade the tax system, and talks about what tax reform could look like. I listened to this and thought “wow, a lot of this just shouldn’t be allowed.”
But until the laws change, it will be.
Real Estate News & Data
Spring home prices heat up, but not everywhere
Home prices nationally are up just 0.8% since this time last year, but there are notable regional variances: markets in the Midwest and Northeast are strongest (Milwaukee WI +5.7%, Hartford CT +5.3%), while markets in the South and West are weakest (Austin TX -5.9%, Tampa FL -3.4%, Las Vegas NV -2.7%). See image below, or click here for an interactive map.
Want to dig futher? Click here for a searchable table of home price trends in 1,000 US markets, including price shifts in the last month, the last year, and since 2020. (Tread carefully, data nerds, this one can be a rabbit hole…)
The Latest in My Portfolio
I’ve updated my portfolio tracking figures through the end of March.
Things have been quite steady in my portfolio so far this year. I currently have one vacancy, but it was a pretty cheap turn and should re-rent quickly.
I’ve also published detailed posts on two more of my specific investment homes: Property #10 and Property #11. Now I only have #12-#16 before I have a spotlight article for each property!
BTW, if you’ve never seen one of my property spotlights, they contain every shred of info and data about each of my homes, including how they have performed every year since I bought them.
And of course…there are charts and graphs! Here’s a taste of what I published about Property #11:
And now this!
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Well, That’s Interesting…
Everyone hates their HOA
Property taxes and insurance rates have both increased sharply in the last five years. But interestingly, so have HOA fees, which primarily impact homeowners in nicer neighborhoods, as well as condo owners. Millions of Americans now pay more than $6,000 per year to their HOA.
Fun fact: only one of my investment homes, Property #8, has an HOA fee. I didn’t realize this until a few days before closing, but it was only ~$30/mo., so I decided to move forward anyway. Recently, they sent me a “violation” letter because my tenant apparently parked in the wrong place. Whatever, dude.
But that’s a perfect illustration of why HOAs are so unpopular. And that distaste is getting more acute as HOA fees increase.
BTW, the cost and unpredictability of HOA’s is one reason that I recommend investors avoid condos as investment properties.
Eric’s Picks
Blog: Mr. Money Mustache (ake Pete Adeney) doesn’t publish new content on his blog that often these days. So when he does, it’s kind of a big deal — and he just released a banger: The Shockingly Simple Math Behind Social Security (which is of course a call-back to his now-famous 2012 post, The Shockingly Simple Math Behind Early Retirement.)
Podcast: Chad Carson discusses how to “manage your property manager”, which he describes as adopting an “asset manager” mindset. Totally aligned with Chad on this, and though it doesn’t always get a lot of attention, this might be the most important topic that determines the long-term success of a rental property investor.
Analysis: A million bucks isn’t what it used to be — at least according to the millionaires interviewed in this article. Perhaps there’s a bit of “whining on the yacht” here, but it’s still true that $1M today only has the buying power that $480,000 did 30 years ago.
Video: Chad Carson (him again?) responds to bad real estate advice from other financial personalities like Dave Ramsey and Grand Cardone. With as much bad real estate advice as there is out there, you could make a whole channel out of this format…
More interesting stuff:
Ed Elson describes how the “break now, fix later” mindset has infused many of the Trump administration’s policy decisions, from tariffs to Iran to the East Wing ballroom. I don’t normally highlight political stuff, but this is a great analysis, and well-written.
The annual World Happiness Report is out. Somehow, Finland is the happiest country for the 9th consecutive year in spite of the cold and darkness, while the U.S. was ranked 23rd. The report singled out algorithmic social media use among teens as a risk to their well-being.
Because we all need a heartwarming story right about now: construction workers cared for a stray terrier for over two months in winter, building the dog a small house and providing blankets and food. The dog was later adopted. More proof, as if we needed it, that the evolutionary superpower of dogs — to get humans to love and care for them — is a nearly unstoppable force.
About the Author
Hi, I’m Eric! I used cash-flowing rental properties to leave my corporate career at age 39. I started Rental Income Advisors in 2020 to help other people achieve their own goals through real estate investing.
My blog focuses on learning & education for new investors, and I make numerous tools & resources available for free, including my industry-leading Rental Property Analyzer.
I also now serve as a coach to dozens of private clients starting their own journeys investing in rental properties, and have helped my clients buy millions of dollars (and counting) in real estate. To chat with me about coaching, schedule a free initial consultation.
Free Rental Property Analyzer
You probably know that a well-designed rental property calculator is the most important tool a real estate investor has. It allows you to quickly calculate key metrics and understand your cash returns on a target property. You can also answer questions like:
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Those questions can be easily answered with side-by-side comparisons in the RIA Property Analyzer. I guarantee this is the best free rental property calculator out there today, and many of my readers have told me the same. It’s both powerful and very simple and intuitive to use. Check it out!
