Economic data this morning reinforced the same theme markets have been grappling with all week: cooling but not collapsing. The University of Michigan’s January sentiment reading inched higher for a second straight mo...

Hiring momentum remains weak.

In fact, I’m seeing the same operator-driven value-add show up in other operationally heavy asset classes like campgrounds, RV parks, and certain STR portfolios.In those niches, the physical plant and market demand can be solid, but weak systems, poor guest experience, outdated pricing, or passive ownership crush cash flow.

-Our biggest weakness (though also a strength) is we have gone much more slowly than full-time shops because we haven't been full-time until now. 

A great spreadsheet does not fix a weak contractor or poor project management.

Remote flipping is structurally harder, and the fact that you’re requiring a larger spread is actually a sign of discipline, not weakness. 

Its value, however, depends less on the technology itself and more on how its outputs are interpreted.This post provides a general overview of where AI is genuinely useful in real estate market data—and where caution is warranted.Where AI Adds ValueAI is strongest at pattern recognition across large datasets, including:Sales and transaction historyRental listings and rent trendsPermits, construction, and supply pipelinesDemographic and employment dataMacroeconomic indicatorsUsed properly, AI helps identify trend direction, relative risk, and early signals, especially across multiple markets or submarkets.Forecasting: Direction, Not PrecisionAI performs best when:Comparing scenarios rather than predicting exact pricesHighlighting relative market strength or weaknessStress-testing assumptions under different conditionsIt performs poorly when asked to:Time market tops or bottomsPredict regulatory or policy changesCompensate for weak or incomplete dataAI outputs should be viewed as probabilistic, not definitive.Submarket Insights Matter MostThe greatest leverage often appears at the neighborhood and corridor level, where traditional reporting lags.

Lower leverage, more liquidity required, less tolerance for execution risk.Experience doesn’t replace weak numbers, but it does buy flexibility.

What I struggle with is that much of this lower-cost housing has weak fundamentals and very little margin for error.

They manage investors, not just tenantsA lot of PMs are great at collecting rent but weak on protecting the owner.