A few real estate investing ideas are on my mind today, so I’ll break my “rule of one” idea and share a few.
*** First up, South Florida real estate supply is now below 50k units. Ultimately, it’s just a number. But this decade we’ve seen peaks and valleys. In 2022, supply hit 14,673 units – an extreme low. Then it raced back and hit a high of 63,926 in April, 2025 – an historic high. That’s a massive 335% increase in a few years.
Today, supply sits around 49,300 units. A drop of 23% in just 16 months.
These numbers create psychological gyrations for consumer. For real estate investing, it’s good to know, but for today’s market, the numbers are hard to make work. For some it helps to know when to buy or sell at the best times in the real estate cycle. What does it mean to you?
*** If you’re are real estate investing for your first time I have two relevant ideas. First, if the number’s don’t “pencil out”, pass. Forcing a proforma or spreadsheet to fit your own bias is a fools game.
Last week I published a short video about how leveraging your capital in today’s market is almost impossible. Prices are too high and rents don’t create enough revenue to cover fully allocated debt. Meaning, the days of getting an 80% loan – 20% down – to cash flow a triplex or apartment have been gone for a decade or more.
Real estate investing with leverage is not going to happen today.
To breakeven in today’s real estate investing world, getting a 50%, 40% or even 25% loan is what’s needed. That’s not leverage. That’s similar to putting all your eggs in one basket – something astute investors refrain from. Right, Les?
That brings me to the hardest part of this idea: patience. I can’t tell you how many times this summer I’ve told potential customers, and investors, to slap on their patience pants and find something else in which to invest. If you want leverage, you must wait. This market is better for speculators looking for potential upside, and not longterm cashflow.
And to me, real estate investing must have the cash flow element. Without that, it’s pure speculation.
*** Too often I see home buyers with mixed messages. “We want to start real estate investing and buy a nice home as an investment.” That’s where things go wrong. That sounds like me in the late 90’s and early 2000’s with my wife. Back then all I bought were 3 and 4-unit apartments. Everything was an investment.
But my wife would wisely say, “that’s where we’ll live and it’ll be our home.” I thought she was cuckoo. She was right – guess who was cuckoo.
Your home isn’t real estate investing, per se. It’s where you create memories. There’s no cashflow. You don’t raise your rent. It’s a place to enjoy. Understanding these differences when real estate investing is paramount.
(Main Photo Above: A beautiful 4-plex apartment in southeast Delray Beach).
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*** New Restaurant Alert: Ethereal. WOW. NE 3rd Ave / NE 3rd St. Same owners as what’s across the street, Glimmer Cafe.
*** The ONLY CityWalk Condo for sale right now in the heart of Pineapple Grove. Good value, fresh paint throughout, new HVAC system, new garbage disposal and a comfortable private storage room – hurry. My phone started ringing for this one.
*** In the Path of Development this 2025-built downtown Delray home puts Delray Beach’s finest dining, boutiques, and beach scene within easy reach — while the city grows around you.
*** My latest townhome listing in west Lake Worth. 4-bed, 2.5-bath beauty in Lakeshore At The Fountains. Golfers will love this one with low non-mandatory membership and two courses.
*** This Pineapple Grove Condo unit should be of interest. Walkability – check. Good value – yup. Security – uh huh. Fitness, pool and sauna – you bet. The ultimate lifestyle play.
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*** South Florida Inventory is BELOW 2019 ***
Last week’s supply was 49,313
Today’s supply is 49,300
*** Supply is DOWN 53 of the last 66 weeks ***
