The question every real estate investor asks and asks often: Where should I invest?

Who is renting your property? Passive investors are sometimes a bit detached from who their residents are and what they’re all about. At times, we may inadvertently be too “hands-off” in this area, neglecting to understand how we can better appeal to and retain our residents.

As a real estate investor, scaling your portfolio is the number one way to create wealth. After all, no one gets rich with one rental property. It’s holding multiple cash-generating investment assets that compound into lasting wealth.

Sometimes, we make the mistake of zooming out too much when it comes to real estate. We focus so much on national and global real estate trends that we miss the reality of where we – and our rental properties – are. There’s a mantra you may have heard from time to time:

We don’t know if you’ve moved recently, but anyone who’s gone through the process knows what a hassle it is. Not only can moving be costly, but it’s generally stressful, too! So why do people do it? Thinking your rental residents move because they’re ready to buy a home is too simplified. While that may be the reason, other factors motivate people to seek “greener pastures.”

Imagine you’re at a restaurant. You shell out your hard-earned money not just for a meal – but an experience. After all, would you return to a place that served an excellent meal with poor service? Likely not. And many of us would more easily forgive a mistake or a fine – but not exceptional – dinner if it came with attentive, personable service.

The COVID-19 pandemic changed much of what we consider “normal” for the real estate market. The trends we saw were often unexpected and unprecedented. Now, almost five years later, where are we? The age-old debate between multifamily and single-family rentals continues to rage, but we’re still placing our bets on the latter.

With a new year and a new president approaching, change is on the horizon for the real estate market. While we’re cautiously optimistic that the U.S. housing market will turn in our favor, we also know this: success depends less on market conditions and more on our informed decision-making backed by solid fundamentals.

Portfolio analysis sounds daunting, particularly to newer investors who may be unsure what this process entails. Are you doing it right? Looking at all the relevant factors? Making the right decisions?

Do us a favor. Type “real estate news” in your search bar. Now count how many headlines seemingly contradict one another. No matter when you do this, you’ll find a huge variety of opinions and predictions. Right now, we’re seeing people say that “there’s never been a better time to invest,” while others say the opposite.