Cap rates have long been the shorthand for evaluating real estate deals. They’re simple, widely used, and easy to compare across markets. But in today’s environment, relying on cap rates alone is one of the fastest ways to misprice risk. In 2026, where debt costs, rent growth, and operating expenses are all shifting, cap rates tell only a fraction...
Ken McElroy’s Real Estate Edge
Direct from the desk of Ken McElroy! Your trusted source for up-to-date real estate insights, financial literacy, and actionable investing solutions.
Real estate rewards patience-but it punishes ignorance. The difference between experienced investors and everyone else isn’t just deal selection; it’s the ability to read markets before they turn. In 2026, as supply surges, debt tightens, and migration patterns shift, the ability to spot a failing market early has become one of the most valuable skills in real estate investing. Those who recognize the...
For more than a decade, real estate investors operated in an environment where debt was an advantage. Cheap capital, rising asset values, and easy refinancing made leverage a powerful tool for growth. But that environment has changed. In 2026, debt is no longer a tailwind—it’s the single most important risk factor in real estate investing....
When Should You Sell a Rental Property?
April 1, 20260
One of the most important-and misunderstood-decisions in real estate is knowing when to exit. Most investors default to selling when prices rise, but that’s not always the smartest move. The real question is not “Can I sell?” but “Should I sell?” The answer depends on cash flow, tax implications, and future opportunity cost. Understanding when to sell rental property requires a shift...
The Truth About Passive Income in Real Estate
March 30, 20260
“Make passive income while you sleep” is one of the most overused promises in real estate. It sounds appealing-and partially true-but often misunderstood. The reality is that passive income real estate is not created by buying property; it is created by structuring and managing it correctly. According to Federal Reserve (2024), real estate remains one of the most...
Why Flipping Is NOT Wealth Building
March 30, 20260
House flipping is often marketed as the fastest way to make money in real estate. The formula sounds simple-buy, renovate, sell. But simplicity hides risk. The reality is that house flipping risks are increasing in today’s U.S. market, where margins are tightening and costs are rising. According to ATTOM’s 2024 U.S. Home Flipping Report, profitability has declined compared...
One of the most important forces in the economy isn’t interest rates, inflation, or even unemployment. It’s liquidity. And right now, I don’t think enough people are paying attention to what’s happening with it. The basic definition of liquidity is how quickly and easily something can be converted to cash without a significant loss in...
How Property Management Impacts Returns
February 11, 20260
Most new real estate investors obsess over purchase price, interest rates, and rent estimates. They build spreadsheets, run scenarios, and try to buy “right.” But many of them overlook a factor that can quietly shape their returns for years after the purchase: Property management. A rental property is not just an investment. It is a small...
If you ask ten real estate investors how they make money, you will usually hear two words come up again and again: cash flow and appreciation. These are the two primary engines that drive returns in real estate. Every rental property, apartment building, or investment home produces returns from one, the other, or a combination of both. The confusion for beginners...
The real estate market is entering 2026 with a mix of cautious optimism and unresolved uncertainty. Mortgage rates have improved from recent highs, pending sales are showing signs of life, and more buyers are paying attention again. It is easy to look at those signals and assume the market is “coming back.” But 2026 is not shaping...
