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Welcome Back,

Hi there, I hope your week went well and… happy FRIDAY! It’s finally the end of the week. Those of you getting the weekend off, I wish you the best, and those of you who don’t, good luck. On this fine Friday morning we will be diving into another real estate market in the golden state of California. Today’s market will be San Jose, and we will go into everything you need to know to determine whether or not San Jose is a market you want to invest in. Enjoy!

— Ryan Rincon

Subscribe to our neighbor newsletter Early Bird Stock Market News to stay up to date on all things investing to start making money in the stock market.

Daily News Updates:

​IMF Downgrades Global Growth Forecast Amid Escalating Trade Tensions​

The International Monetary Fund (IMF) has issued a warning about a significant slowdown in global economic growth due to rising trade tensions. The IMF's upcoming World Economic Outlook is expected to reflect these concerns, highlighting the adverse effects of increased tariffs and trade barriers on global productivity and financial stability. Despite these challenges, the IMF does not anticipate a global recession at this time. ​European Central Bank Implements Seventh Consecutive Rate Cut​

In response to mounting economic pressures from global trade disputes, the European Central Bank (ECB) has reduced its benchmark interest rate by 0.25 percentage points to 2.25%. This marks the seventh consecutive rate cut aimed at stimulating the eurozone economy amidst uncertainties stemming from recent U.S. tariff announcements. ECB President Christine Lagarde emphasized the need for monetary agility in the face of exceptional uncertainty. ​

Trump Criticizes Fed Chair Powell Amid Calls for Interest Rate Cuts​

Former President Donald Trump has intensified his criticism of Federal Reserve Chairman Jerome Powell, stating that his "termination cannot come fast enough." Trump's remarks come as he urges the Fed to implement immediate interest rate cuts to counteract the economic impact of new tariffs. The Fed has maintained its current interest rates, citing the need to balance inflation control with economic stimulation. ​

​Economists Raise U.S. Recession Probability to 45%​

A Reuters poll indicates that aggressive U.S. tariff policies are expected to significantly slow the U.S. economy in 2025, with the recession probability in the next 12 months rising to 45%—the highest since December 2023. The poll also shows a sharp downgrade in 2025 GDP growth estimates from 2.2% to 1.4%, with continued weak growth predicted for 2026. Inflation expectations have surged, limiting the Federal Reserve’s flexibility to cut interest rates. ​

​TikTok Restructures Global E-Commerce Operations​

TikTok is reorganizing its global e-commerce operations, granting greater authority to executives based in China and Singapore. This restructuring affects the Global Governance and Experience team and coincides with TikTok's expansion into Latin America, particularly Brazil and Mexico. The move includes layoffs within the U.S. team and reflects ByteDance's response to weak 2024 performance in the U.S. and political uncertainties following a law requiring TikTok's divestment from its American operations. ​

Market Snapshot: April 18, 2025​

• S&P 500 (SPY): $527.21, up 0.30%

• Dow Jones (DIA): $391.22, down 1.39%

• Nasdaq (QQQ): $444.57, up 0.09%

• Russell 2000 (IWM): $185.48, up 0.28%

• Vanguard Total Stock Market ETF (VTI): $258.79, up 0.22%

Real Estate Investing

Market Snapshot:

The San Jose housing market in 2025 is experiencing a period of stabilization. While the market remains competitive, increased inventory levels have provided buyers with more options and slightly more negotiating power.​

Key Market Metrics:

• Median Home Price: Approximately $1.6 million, reflecting a 0.2% decrease from the previous year. ​

• Appreciation Rate: Home values are projected to remain essentially flat this year. ​

• Listings Growth: Inventory levels are anticipated to start at least 20% higher than in 2024. ​

• Market Competitiveness: Despite the slight cooling, San Jose remains a seller's market, with high interest and low housing inventory.

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Deal Of The Day:

• Location: Willow Glen, San Jose, CA​

• Price: $2,950,000​

• Units: 5 (2-Bed, 2-Bath each)​

• Monthly Rental Income: $14,000​

• Cap Rate: 4.9%​

This well-maintained 5-plex in the desirable Willow Glen neighborhood offers strong rental income potential. Each unit is spacious and updated, attracting long-term tenants. With proximity to downtown San Jose and major tech employers, vacancy rates are low, and rental demand remains high.​

Deal Rating: 7.9/10

Investment Strategy:

1031 Exchange

A 1031 Exchange allows investors to defer capital gains taxes by reinvesting proceeds from the sale of an investment property into a similar property. This strategy can help grow your real estate portfolio more efficiently.​

Example: Selling a rental property for $1 million and reinvesting the proceeds into a new property of equal or greater value can defer taxes and increase your investment potential.

Current Interest Rates:

San Jose buyers are still navigating relatively high borrowing costs — though rates have started to level off after last year’s climb.

• 30-Year Fixed: 6.77%

• 15-Year Fixed: 5.96%

• 5/1 ARM: 7.12%

While not ideal for first-time buyers, experienced investors are adjusting strategies — favoring ARMs, interest-only options, and negotiating seller credits to buy down rates.

Tip: If you're investing for cash flow, it’s crucial to run your numbers at worst-case rate scenarios. Make sure your investment still cash flows even if you refinance later at 7%+ — this protects you in case rates don't fall soon.

Real Estate Tip:

3 Smart Ways to Maximize ROI in 2025’s Market

Whether you're new to real estate or a seasoned investor, 2025 is the year to get more strategic with how you buy, finance, and scale. With high mortgage rates and economic uncertainty, success depends less on timing the market — and more on mastering your strategy.

1. Focus on cash flow, not just appreciation.
Appreciation has been strong in recent years, but it’s slowing. Make sure your deals stand on their own with healthy cash-on-cash returns from day one. A good benchmark is at least 6–8% cash-on-cash, even in pricier markets.

2. Refinance later — but buy smart now.
Many investors are using 5/1 ARMs or interest-only loans to minimize early expenses, knowing they'll refi once rates drop. The key is to lock in properties below market value so you have equity no matter what.

3. Don’t go it alone.
Partnering with others — whether it’s a contractor, a lender, or a fellow investor — can help you scale faster. Look for joint ventures or syndications where you provide capital and let others manage the heavy lifting.

The days of “any property will rise in value” are over. But with smart financial structure and long-term vision, you can still build wealth — one smart deal at a time.

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Economic Conditions

San Jose continues to ride a tech-driven economic wave, with unemployment at 3.9%, one of the lowest in California. Major employers like Adobe, Apple, and Google are expanding their local presence, driving migration and keeping housing demand high.

However, challenges remain:

• Housing affordability is pushing out lower-income residents.

• Construction costs are up over 6% YoY, largely due to labor shortages and materials.

• Inflation in the region sits above 4%, making it harder for new developments to pencil out.

Still, investors are capitalizing on strong rent growth (5–7% annually) and a consistently low vacancy rate, especially for multifamily properties. San Jose remains a high-barrier market with strong fundamentals.

Market Rating: 7.5/10

Key Takeaways:

• San Jose Market Update: Median home price now $1.52 million, up 7.1% YoY with listings selling fast and often over asking.

• Deal of the Day: Willow Glen duplex at $1.95M earns $8K/month — solid location, great cash flow.

• Real Estate Tip: Use a HELOC to tap home equity and buy your next investment property.

• Strategy Spotlight: A 1031 Exchange lets you defer taxes and scale up — a must-know for serious investors.

• Interest Rates: 30-year fixed at 6.77%; investors are using creative lending strategies to cash flow in high-rate environments.

• Economic Conditions: Low unemployment, strong tech hiring, but rising inflation and construction costs — still a strong rental market.

• Article: 3 ROI-boosting tips — cash flow over appreciation, buy smart now, and partner to scale.

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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.

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Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.