Active investors have to conduct diligence on the investment thesis/ opportunity whereas anyone investing passively has to conduct diligence on the operators as well as the investment thesis/investment opportunity.

There are a lot of great opportunities for investors right now and many coming in 2025.

I focus solely on Detroit proper because, in my experience, the rent-to-price ratios, opportunities for value-add projects, and overall market potential are much stronger there.That said, Detroit is a nuanced market.

As we wrap up the year and look ahead to 2025, the real estate market continues to present unique challenges and opportunities for investors, brokers, and lenders alike.

However, the IRS may scrutinize exchanges if the holding period post-transfer is too short (typically 12-24 months recommended).If one partner wants to defer capital gains while the other prefers cash, the deferring partner could reinvest their share into a Qualified Opportunity Zone (QOZ) fund, which can defer and reduce taxable gains if held for at least 10 years.

• Any tips for maximizing house hacking opportunities in this area?

That’s an exciting opportunity, Ashley!

Identifying value-add opportunities in strong neighborhoods and negotiating deals that make sense is something I’ve done a lot, so I understand what it takes to make these projects successful.If you’d like, we can connect and talk through some strategies or areas to focus on—I’m here to help however I can.

With interest rates holding steady (so far) and US Treasury yields hovering in the 4-5% range, many investors are weighing the pros and cons of staying in bonds versus seeking opportunities in real estate.

This is a tough situation, but you’re gaining valuable experience that will serve you well in future deals.