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» VISIT US ONLINE @ DSNEWS.COM 19 it as simply housing that is affordable, and I believe there continues to be a tremendous opportunity for investors there. No Slowdown in Single-family Rentals Homeownership for young adults under 35 is well below what we have seen over the years, ending 2018 around 27 percent. As more millennials enter their 30s, start families, and want their own homes, single-family residential homes will be a compelling space for investors in coming years. at being said, due to rising rates and affordability issues, many first-time buyers are going to struggle to make that first purchase. e Tax Cuts and Jobs Act passed by Congress in 2017 will also be a major factor this year. Many homeowners are going to be in for a surprise in April with the capped state and local tax deduction and reduced mortgage interest deduction for new loans. It's been reported that there is a benefit to itemizing the taxes on 44 percent of US homes, but under the new tax reform plan that number could drop to as low as 14.4 percent. Between the generational trends and the significant reduction of tax benefits of homeownership in higher priced areas, there should be a lot of interesting opportunities in the single-family residential space in the coming years. Investments in Qualified Opportunity Zones e Tax Cuts and Jobs Act also created the Qualified Opportunity Zone program. e program encourages investment to spur economic growth in low-income areas in the U.S. and its territories by offering significant tax benefits, like the ability to defer and eliminate future capital gains, to real estate investors. In 2018, about 8,700 Qualified Opportunity Zone designations were finalized. While there are a number of complexities that make it challenging for individual rental property investors to start a qualified opportunity fund, it is quite easy to invest in existing funds. e designated opportunity zones list is also a good resource to keep in mind when seeking your next deal due to the potential for significant development. Most investors with whom I have spoken have a qualified opportunity zone surprisingly close to their existing investments and I expect to see increasing investments in these zones in 2019. e Rapid Growth of PropTech e PropTech industry had a huge year in 2018—from both an investment and user adoption perspective. Unlike in the past, more investors today are willing to pilot new real estate technology products, and many are integrating them into their day-to-day workflow and are seeing positive returns. Heath Silverman is the co-founder and CEO of Stessa. Stessa gives the millions of real estate investors with single-family rentals and multifamily buildings a powerful new way to track, manage, and communicate the performance of their real estate assets for free. A real estate investor for nearly 20 years with 60+ rental units across the country, Silverman is incredibly passionate about the rental property industry and loves helping other people succeed at investing in real estate. e PropTech industry had a huge year in 2018—from both an investment and user adoption perspective. Unlike in the past, more investors today are willing to pilot new real estate technology products, and many are integrating them into their day-to-day workflow and are seeing positive returns. THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com.

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