Jan 1: 🥂 Your 2026 Financial Reset Starts Now

While the market is quiet, savvy investors are locking in Q1 deals and 0% STR furnishing. Here is your 2026 game plan.

Author

Alex Veytsman
January 01, 2026

🎊 The Lending Letter 🏡

Happy New Year! Markets Are Sleeping, But Opportunities Aren't

Happy New Year! 🎉 Welcome to 2026! While you're nursing that champagne headache and pretending you'll stick to those resolutions, the mortgage market is taking a well-deserved nap. But that doesn't mean we can't talk about what's ahead and how to crush your real estate goals this year. ☕

📊 TODAY'S 30-YEAR FIXED RATE
6.20%
According to Mortgage News Daily | No change from 12/31/25
🎊 Markets closed for New Year's Day

🎆 The New Year's Day Market Freeze

So here's the deal: mortgage rates are sitting exactly where they were yesterday at 6.20% according to MND, and there's a very good reason for that—basically everyone who moves rates around is either recovering from last night or pretending to watch football while scrolling their phone. 📱

But here's what's actually interesting: while the official market is closed, the real estate market never truly sleeps. Savvy investors and homebuyers are using this downtime to strategize, plan, and position themselves for 2026. And if you're reading this on New Year's Day instead of just watching bowl games, you're already ahead of the game. 🏈

📅 What to Expect This Month

January typically brings a fresh batch of buyers who've been sitting on the sidelines during the holidays. Translation: inventory will start improving, but so will competition. The key is to be positioned before everyone else gets their act together in mid-January. According to Realtor.com data, the first few weeks of January often offer the best negotiating power before the spring rush begins. 🌱

💰 Lender Promos: Your 2026 Head Start

🏠 Ready to Make 2026 Your Real Estate Year? Whether you're buying your first home, upgrading, or building your rental portfolio, starting strong matters. Fill out this quick form and we'll connect you with lenders who are hungry to start the year with closings.

🏢 Investors: January Is Your Secret Weapon While wannabe investors are "thinking about it," you could be closing deals. Connect with investment property specialists here who understand that wealth is built through action, not contemplation.

🏖️ STR Operators: Beat the Rush Smart money is already locking down properties before spring premium kicks in. Get connected with STR loan specialists here who can structure deals that actually make sense for your Airbnb empire.

🧠 Educational Corner: The January Financial Reset You Actually Need

Forget "New Year, New You" nonsense. Let's talk about something that actually matters: optimizing your debt structure in 2026. 💪

Most people enter the new year with a random collection of debts accumulated over time—credit cards at 22%, a car loan at 7%, maybe a personal loan at 12%. It's like having a messy closet but for your finances. Time to Marie Kondo this situation. 🗂️

💡 The Debt Avalanche vs. Debt Snowball Debate (Finally Settled)

The Math Approach (Debt Avalanche): Pay minimum on everything, throw extra money at the highest interest rate debt first. According to NerdWallet's analysis, this saves you the most money in interest payments. It's the smart play on paper.

The Psychology Approach (Debt Snowball): Pay minimum on everything, attack the smallest balance first regardless of interest rate. Dave Ramsey popularized this method because quick wins create momentum. You pay slightly more interest, but you're way more likely to stick with it.

The Real Answer: It depends on you. Are you motivated by math or victories? Here's a pro tip though—if you have high-rate credit card debt AND home equity, neither of these matters as much as considering a cash-out refinance or HELOC to consolidate that expensive debt into tax-deductible mortgage interest at 6-7% instead of 22%. That's not a "trick," that's just not being financially silly. 🎯

The January Action Item: Pull your credit report (free at AnnualCreditReport.com), list all your debts with interest rates, and actually look at the total picture. You might be shocked at how much you're paying in interest annually. Knowledge is power, but only if you use it. 📊

🏘️ For Real Estate Investors: The January Game Plan

Here's what smart investors are doing right now while everyone else is in a carb coma:

1. The Tax Move
You know what's better than a New Year's resolution? Actual tax savings. If you closed on an investment property in late December 2025, congratulations—you can now deduct a full year of expenses. But here's what you might not know: a cost segregation study can accelerate depreciation and potentially save you $20K-$100K+ in taxes. Yeah, you read that right. This isn't some sketchy loophole—it's an IRS-approved strategy that real investors use. 💰

2. The Q1 Acquisition Strategy
According to Zillow research, January through March typically offers the best buyer negotiating power. Why? Less competition, motivated sellers (holiday financial reality), and agents who are hungry after a slow December. If you're sitting on capital, this is your hunting season. 🎯

3. The STR Winter Opportunity
Everyone thinks you buy STR properties in summer. Wrong. You buy them in winter when prices are softer, then you're positioned for peak season. Ski towns, snowbird destinations, and warm-weather markets are still printing money right now. And here's the kicker: you can furnish with 0% interest funding, so your startup costs become way more manageable. Getting set up now means you're crushing it by spring break. 🏖️

4. The Portfolio Review
New year = time to actually look at your numbers. Pull your rent rolls, check your occupancy, review your property management performance. Are any properties underperforming? Time to optimize or sell. According to BiggerPockets analysis, most investors hold underperforming properties way too long out of emotional attachment. Be ruthless. Your portfolio should be a business, not a museum. 📈

🎓 Personal Finance Hack: The "Backdoor" Roth Contribution for High Earners

💎 A Legal Tax Workaround That Actually Works

Alright, this one's a bit technical but it's worth understanding because it can save you serious money over time. If you earn too much to contribute directly to a Roth IRA (in 2026, that's $165,000+ single or $246,000+ married), there's a completely legal workaround. 🚪

The Problem: Roth IRAs are amazing (tax-free growth forever!), but high earners are locked out of direct contributions.

The Solution: The Backdoor Roth
Here's how it works, per Investopedia's guide:

1. Open a Traditional IRA (anyone can do this regardless of income)
2. Make a non-deductible contribution of up to $7,000 ($8,000 if you're 50+)
3. Immediately convert it to a Roth IRA
4. Boom, you're in 💥

The Catch (There's Always One): If you have existing pre-tax IRA money, the pro-rata rule can make this messy. Basically, the IRS looks at ALL your IRAs combined when calculating taxes on the conversion. This is where people mess up—they try to do this with a $200K rollover IRA sitting around, and suddenly it's a taxable nightmare.

Pro Move: If you have an employer 401(k), many plans let you roll your pre-tax IRA money INTO the 401(k) (called a "reverse rollover"). This clears out your IRA so the backdoor Roth is clean. Not all plans allow this, but if yours does, it's a game-changer. 🎮

Why This Matters: Over 30 years, that $7,000 growing tax-free could become $50K-$100K depending on returns. Multiply that by doing it every year, and you're looking at potentially hundreds of thousands in tax-free money in retirement. That's real wealth building. 🏦

Action Item: If you're a high earner, set a reminder to do this in January every year. Make it automatic. Talk to your CPA or financial advisor to make sure you're doing it right—mistakes here can be expensive. But done correctly, it's one of the best tax optimization moves available.

📊 Market Intel: What 2026 Might Actually Look Like

Okay, time for some real talk about what to expect this year. No crystal ball promises, just informed analysis:

Rate Predictions Are Basically Useless
Remember when everyone said rates would be 5% by now? Yeah. Freddie Mac's economists have been wrong repeatedly, and so has basically everyone else. The Fed might cut rates, they might not. Inflation could behave, or it might not. The point is: stop trying to time the market perfectly and focus on deals that work at current rates. 📉

Inventory Will Improve (Slowly)
The lock-in effect is real—homeowners with 3% mortgages aren't rushing to sell. But life happens: job changes, growing families, divorces, deaths. NAR data suggests inventory will continue its slow climb throughout 2026, which means more options for buyers. But "more" doesn't mean "abundant"—we're still well below historical norms. 📊

The Affordability Challenge Persists
Let's not sugarcoat it: housing is expensive. According to ATTOM data, wage growth hasn't kept pace with home price appreciation in most markets. But here's the thing—it's been "unaffordable" for years, and people keep finding ways to make it work. Creative financing, house hacking, partnerships, investment strategies—there are always solutions for motivated buyers. 🏡

The Regional Divergence Continues
National averages are almost useless now. Some markets are cooling while others are still hot. Sunbelt cities are seeing moderation, some Midwest markets are appreciating nicely, and certain California markets are actually softening. Do your homework on YOUR specific market—that's what matters. 🗺️

🎯 The Real New Year's Resolution: Take Action

Look, 85% of people abandon their New Year's resolutions by February. You know what doesn't change? The need for housing. The power of real estate as a wealth builder. The advantage of starting now instead of "waiting for perfect conditions." 💪

Here's your actual 2026 resolution: Stop overthinking and start doing. Whether that's buying your first home, adding to your portfolio, or finally getting serious about that STR business you've been "researching" for 18 months. 📚

🎯 Your 2026 Launch Checklist:

Start the year right. Like, actually right:

🌟 The Bottom Line

Today's rate of 6.20% isn't going to make headlines, but you know what will? The deals you close in Q1 2026 while everyone else is "waiting for better conditions" that may never come. 🎯

The best investors don't wait for perfect conditions—they create them. They find motivated sellers, structure creative deals, maximize tax advantages, and build wealth regardless of what rates are doing. That's the difference between people who talk about real estate at parties and people who actually build generational wealth through it. 💎

Plus, remember: every property you don't buy because you're waiting for rates to drop 0.5% is a property someone else is buying and benefiting from. Appreciation, rent, tax benefits, equity build-up—all happening without you while you're sitting on the sidelines analyzing spreadsheets. ⏰

Make 2026 the year you actually execute. Your future self (the one sitting on a beach with passive income rolling in) will thank you. 🏖️

Now go enjoy the rest of your New Year's Day. We'll be back tomorrow with fresh intel, new strategies, and probably some dad jokes. Because that's how we roll. 😎

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See you tomorrow (Friday, January 2) for another dose of mortgage market reality!

Disclaimer: This newsletter is for informational and entertainment purposes only. Rates and terms vary by lender and borrower qualifications. Always consult with a licensed mortgage professional, financial advisor, and tax professional for your specific situation. The strategies discussed require careful consideration of your personal financial situation and risk tolerance.