How Investors Are Using Fixed Notes to Hedge Against Vacancy Risk
Summary
This article discusses how investors are using asset-backed fixed income, such as real estate notes, to hedge against vacancy risk. STR hosts can diversify their investments with real estate notes to potentially generate more stable income and reduce their reliance on unpredictable rental income from their properties.
Key Insights
- •Vacancy rates for rental housing stood at 7% for the second quarter of 2025.
- •The average rental price is on the decline (according to Zillow).
Action Items
- ✓Consider diversifying your real estate portfolio beyond owning and renting out property.Effort: mediumImpact: medium
Tools & Resources
- →Connect Invest: Discover how Connect Invest gives landlords a hedge against unpredictable rental income.
Common Mistakes
- ⚠Not diversifying your real estate portfolio can lead to loss of income.
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