Welcome Back,

Hi everyone, I hope your Weekend was not only productive but also FUN! Today we are back to discuss our favorite long term investment Real Estate. We will also talk about how you can make huge profits in undervalued markets. Enjoy!

Was this email forwarded to you? Click Here to subscribe to never miss a post. If you received this email by accident and wish to unsubscribe click here.

Real Estate Investing

Market Snapshot:

Boise, Idaho

The Boise real estate market continues to attract attention with a median home price of $460,000, which has increased by 3.2% year-over-year. The region’s scenic environment and growing tech scene have led to an influx of new residents, increasing demand for housing. There are currently 1,750 active listings, down 6% from the previous year, contributing to tight inventory. Despite higher mortgage rates, Boise remains a desirable location for families and investors seeking growth in property values and rental income.
Median Home Price: $460,000
YoY Price Growth: 3.2%
Active Listings: 1,750 (down 6% YoY)

Deal Of The Day:

Triplex in Boise, ID
Price: $935,000
Units: 4 (2-Bed, 2-Bath each)
Monthly Rental Income: $5,700
Cap Rate: 6.3%
This well-maintained Quadplex in the North West Boise City neighborhood offers a strong 6.3% cap rate, making it an attractive option for investors looking to generate solid rental income. Each unit rents for $1,425/month, providing a combined annual rental income of $68,400. The property is located near parks, schools, and shopping, making it a highly sought-after location for tenants. With Boise's continued growth, this property is positioned for both appreciation and consistent cash flow.

Real Estate Tip:

Investment Strategy:

Wraparound Mortgages
A wraparound mortgage is a creative financing option where the seller extends a secondary mortgage to the buyer that “wraps around” the original loan. This allows the buyer to make payments to the seller, who then pays off the original mortgage. For example, you could purchase a property for $400,000 with a 5% interest rate on the wraparound, even if the seller’s original mortgage rate is 3.5%. This strategy can benefit both parties: the buyer avoids high bank rates, and the seller makes a profit on the interest.

Current Interest Rates:

Boise, Idaho
30-Year Fixed Residential: 6.5%
15-Year Fixed Residential: 5.75%
Commercial Rates: Starting at 6.4%
Mortgage rates in Boise are hovering around 6.5% for a 30-year fixed loan, reflecting the national trend of higher borrowing costs. However, the city’s rising rents and property values make real estate investments attractive, particularly for long-term investors.

Join Our New Instagram!

We have recently started a dedicated Instagram page for The Wealth Wagon, and if your enjoying our content here you’ll love to see what we have in store for our Instagram page. Click below to follow us

Follow The Wealth Wagon

Economic Conditions

Boise’s economy continues to grow, supported by strong employment in the tech and agriculture sectors. The city’s unemployment rate is just 3.4%, well below the national average. This low unemployment, combined with a growing population, has pushed up housing demand. Inflation, however, remains a concern, with construction costs rising by 4.7%, which could impact future development projects. Despite this, Boise remains affordable compared to West Coast cities, drawing interest from out-of-state buyers.

How to Profit from Flipping in Undervalued Market

Flipping properties in undervalued markets like Boise can yield substantial profits for investors who know where to look. The key is identifying homes in need of cosmetic repairs or upgrades in neighborhoods experiencing revitalization. For example, purchasing a home for $300,000, investing $40,000 in renovations, and selling it for $400,000 can provide a solid return on investment. Timing is crucial—buyers should target properties when the market is cooling slightly, allowing for more negotiation power with sellers and contractors. Flipping in areas where home prices are still relatively affordable, like Boise, can often result in quicker sales and higher margins compared to larger metro areas.

Key Takeaways:

• Boise Market Update: Median home price $460,000, up 3.2% YoY.

• Deal of the Day: $935,000 Quadplex in Boise with a 6.3% cap rate and monthly rental income of $5,700.

• Tip: Use the 1% rule to evaluate rental property profitability.

• Investment Strategy: Consider wraparound mortgages to secure lower interest rates and creative financing.

• Interest Rates: 30-year fixed rates at 6.5% are creating opportunities for long-term investors in the Boise area.

• Economic Impact: Boise’s 3.4% unemployment rate and rising construction costs highlight a tight labor market and growing housing demand.

Subscriber Q&A

Q: What is a real estate appraisal, and how does it affect the home-buying process? - Subscriber
A: A real estate appraisal is an unbiased estimate of a property’s market value conducted by a licensed appraiser. It is typically required by lenders to ensure the property is worth the amount being loaned. If the appraisal comes in lower than the purchase price, it can affect the loan amount and potentially lead to renegotiation of the purchase price.

Q: What are the benefits of investing in real estate versus stocks?- Subscriber
A: Real estate offers tangible assets, potential for rental income, tax advantages, and the opportunity for property appreciation. It also provides diversification from stocks, which can be more volatile. However, real estate is less liquid and often requires more capital and ongoing management. Investors choose based on their risk tolerance, long-term goals, and preference for income stability or liquidity.

^{If you have a questions regarding real estate reply to this email or email us at [email protected]}

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.

Want to Earn an extra $500-$1000 per month working with us? Email us at [email protected]

P.S. If there is a topic you would like us to go over feel free to email us or comment on our post

If you are enjoying our posts feel free to follow our Instagram below it helps us out greatly!👇👇👇 Thank You