Recent News

Business & Economy News 📈💰

🏦 Wholesale prices post biggest surge in three years, PPI shows, in sign of tariff-related inflation
This is the biggest increase in three years. Chances of a rate cut is slim as this shows inflation is coursing through the economy, even if it’s not felt by consumers yet.

📉 Mortgage rates drop to 2025 low
Until home prices continue to decline, I could care less. Mortgage rates at 6.58% is still high AF for current valuations.

💸 1 in 3 Americans say their financial situation has deteriorated in the past year, new survey finds
Credit card balances are at a new record high, student loan delinquencies are climbing, and a significant number of Americans still lack emergency savings so I’m surprised it’s not 2 out of 3 Americans.

The Brief

The Vacation Home Rental Market Downturn Hits Home

Many of you know that I was able to reach financial freedom through real estate investing, specifically with vacation rentals. 

My rental portfolio hasn’t changed since 2023 (after I sold my Florida rental) and that was intentional. I basically timed the market.

Prices and interest rates made returns make less sense and I have a lot of my net worth tied to real estate during a time when it was likely for the real estate market to experience a downturn.

It was not out of the question to expect people to cut down on spending since inflation was persistent and costs were rising. One of the first expenses people cut back on is travel.

Now in 2025, this has come true. 

While my occupancy is consistent, my nightly rate has gone down significantly to get my calendar booked. 

For July, which is my best month of the year, my revenue is down 20% across my 3 units.

While I’m profitable for now, there is a chance that I end up closer to breaking even if this decline continues. 

I am considering investing a significant amount into renovating my cabin. Over the last year, my average daily rate has declined due to competition with newer builds and more amenities. 

The renovation would be focused on the outdoor space. I have land available around the cabin that can be used to create a permanent seating area and an outdoor activity like mini-golf. I estimate it will cost about $20,000 but I’m not completely sold on the idea.

To be honest, I’ve taken a step back with my real estate portfolio and have just been maintaining the status quo. 

More properties ➡️ more guests ➡️ more complaints

Real estate isn’t passive. I feel like something goes wrong every month. This month, my freezer in the fridge wasn’t cooling so I had a handyman clean out the back of the fridge where the condenser is. Three months ago, I replaced my HVAC because it was finally dying (it was like 20 years old). 

I may look to add another property but I’m more focused on improving my existing properties so that I can bring revenue back up. 

While real estate is a great source of income and where I’ve been fortunate with, it can be annoying.

Personal Finance Resources

🔧 Free Tools to Use

The 50/30/20 Budget Calculator is based on the 50/30/20 rule and you can use your actual spend to see the difference between the recommended numbers vs actual numbers. 

The 401(k) Growth Calculator is designed to help you visualize how increasing your contributions over time can dramatically impact your future.

The Traditional Fire Calculator calculates your FIRE number (annual expense x 25 using 4% withdrawal) and takes into account your current investments and future contributions to estimate when you’ll reach FIRE. 

The Long Term Rental Property Deal Analyzer will let you calculate your TRUE cash flow number after taking into account vacancy and estimated expenses. 

Analysis

The Future of the Vacation Rental Market

The downturn of the economy and consumers holding onto their wallets in order to save money is definitely having an impact on the economy.

That means with less demand, revenue will fall. The high inventory of vacation rentals will fight for the smaller pool of travelers.

Even in the Facebook groups I’m in, I’m seeing more owners selling.

For the owners who are not selling (like me, for now), we have to improve our listings or find ways to get more bookings.

The vacation rental market will correct by downsizing with a smaller number of listings standing.

Ways to improve performance is to improve the property by renovating the property, replacing the furniture, adding exterior amenities, etc.

Not only is travel down, but competition is getting fierce. You see a lot of Airbnbs focusing on an experience and a theme. That’s something I want to do to improve my properties.

I think there will be more of these properties as well as entire sites with multiple properties like a boutique hotel or glamping site.

Recommendations

🔧 Toolbox

This section will showcase the tools I use for anything. I love trying new things so I’ll share what I’m using and why:

• Short Term Rental Insurance: Protect your vacation rental the right way! Don’t rely on Airbnb’s “host protection” which has a bunch a red tape. Input your address, select your coverage amounts, and get a free quote!

• Real estate banking and rental management platform: If you have any rental properties, this is the platform you should be using. Every transaction that happens within my portfolio shows up in bookkeeping and I can link external accounts like my credit card so it auto-imports. Best of all, my tenants can automate paying rent.