A Real Conversation That Shifted My FocusI had a great call with a director of enrollment from Pace Morby’s team.

Some of the strongest reasons to raise rent include:Increased operating expensesSignificant property improvements (new flooring, appliances, etc.)Market shifts showing higher rates for similar unitsA strategic portfolio review showing below-market positioningIt’s not just about adding dollars—it’s about maintaining your investment’s performance in a changing economic landscape.But Sometimes, Holding Off Is the Smarter PlayIn the past, I’ve been know to advise some clients not to raise rent—even when they technically could.

(Based on the past 3 months of single-family home data)🏡 Home ValuesMarch: $488,950April: $495,000May: $495,000⏳ Time on MarketMarch: 23 daysApril: 20 daysMay: 19 days📉 Current Interest Rates30-Year Conventional: 6.97%30-Year VA Loan: 6.50%🧠 Josh’s Take:We’re seeing a real shift happening—even if the stats haven’t fully caught up.

It’s frustrating when the holdup shifts from permits to contractor logistics like insurance or licenses.

Morgan put recession odds as high as 65%, analysts have shifted their focus from tariff fears to housing sector weakness as the most immediate threat to economic stability.The warning signs are mounting fast:77% of Americans say it's a bad time to buy a home (Fannie Mae, April 2025)Mortgage rates hovering near 7% are crushing demand (old story)Home Purchase Sentiment Index shows a net-55% rating for buying conditionsInflation-adjusted residential investment remains flatCiti Research expects housing activity to contract in Q2 after a sluggish start to the year, with the combination of falling permits, rising inventory, and slipping prices painting a picture of a market running out of steam.

I believe here Sacramento is shifting to buyers market.Anyways, we did our inspecdtion, and it came back with some issues like HVAC is original, some leaking pipes, elecric sub panel old, and some of outlets not grounded well, missing weatherstripping and so on with other minor issues.When we get pluming out for leaking isseus, he quoted 1500 for reparing everyrething ( he is cheaper than other contractors), and replacing HVAC and ducks will cost about 16k. 

A Real Conversation That Shifted My FocusI had a great call with a director of enrollment from Pace Morby’s team.

Depending on your goals, sometimes small pivots — like adding minor value-add rehabs or shifting to small multi-family — can unlock better numbers.You're doing the right thing by staying patient and analyzing deals.

Sometimes closing dates shift, so the seller is going to be prepared to collect rent.  

I am just going over the numbers for my June Update and we have probably seen the biggest single months shift in a decade.