5 Predictable Passive Income Success Indicators

Now, five predictable passive income success indicators. We'll go through these real quick. I don't depend on appreciation, but I do my best to get in its way. And where I find appreciation goes is where there's economic growth, population growth, affordability, desirability, and healthy supply and demand. And that's why we go to Florida, because Florida has them all. A couple of things you want to know. Between 2012 and 2021, there were 12.3American households. Forbes, many of those in the southeast. But only 7 million homes were built. Stop and think about that for a minute. That is a monstrous amount of homes. And we were already behind unneeded inventory since the 2008 meltdown. Affordability, people say to me all the time, well, do you think that the market is tapped out? And I say, well, which market are you asking about that's topped out? I always look at very simple fundamentals. So going out to where, near where Jim was out in Salt Lake, you know, the medium home price price out there is 581,000. But in Cape Coral, one of our most expensive markets, it's only 339,000 with similar family incomes and similar rents. This tells me I like to go to areas that show this lower median home value tied to household income. Also Boise, Idaho, Jacksonville, another place where we've had a lot of investors come out of near almost five and a half, 538,000 opposed to 299 similar household incomes and average rents. These are things you guys want to look for when you ask that question, is the market topped out? And when you look at these, which one do you think might be topped out? Which one do you think has room to grow? Desirability. We do not build in Orlando, Tampa or Miami. And if you're a northern boy, like I originally was saying, wasn't that all Florida is? The answer is no. We focus on second tier markets that are showing all of those five fundamentals I just talked about. All of these are having those areas of growth and we're able to get you in at that lower buy in where there's still cash flow. And we believe that higher chance for equity appreciation, which is one of the big reasons that we go into real estate supply and demand. We are answering a call that many people are not doing in the residential realm. This is a really interesting statistic. New builds. The number of new homes under 1400 square feet has declined since 2008 and it's less than 10% of all new builds now. This is a monstrous stat when you really understand, because most of what we build, from our single families to our duplex to our quads, these units are under this 1400 square feet. They're in high demand, they're affordable, and people are looking for them. So this is part of the market. We really answer to that. The national home builders, well, they have no interest in. They don't find it to have large enough margins. We're willing to be a low margin builder. They're not. We're answering the call on this.

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