Podcast Summary: BiggerPockets Real Estate Podcast

Episode: The 2026 Housing Market is Here: 3 New Moves We’re Making This Year
Date: January 2, 2026
Host: Dave Meyer
Guests: Kathy Fecke, Henry Washington

Overview

In this special New Year's episode, Dave Meyer and his “On the Market” co-hosts, Kathy Fecke and Henry Washington, lay out their real estate resolutions for 2026. The trio discusses how a challenging 2025 shifted their mindsets from aggressive growth to strategic optimization and asset protection. Each investor shares a peek into their portfolios, goals for the coming decade, and the specific moves they’re making as the 2026 market takes shape—highlighting the increasing role of AI, the benefits of stabilization over expansion, and the evolution of long-term strategies.

Key Discussion Points & Insights

1. Reflections on 2025 & Market Mindset for 2026

• The hosts agree that 2025 was a tough year for real estate (02:13).
• Optimism is growing for 2026, but strategies are shifting away from pure acquisition towards portfolio optimization and asset protection.

2. Kathy Fecke’s Resolution: Leaning into AI for Real Estate Optimization (02:39 – 09:01)

• Goal: To fully utilize AI to optimize her portfolio, both in property performance and business operations.
  • Her husband, Rich, implemented an AI system that consolidated bank statements, cash flow, and employee roles for deep analysis (03:25).
  • By uploading data (ex. insurance policies), AI helps quickly answer complex business questions and flag underperforming assets (04:34).
• Practical Impact: Already seeing business improvement in a slow market: “We had one of the best months ever for our company last month. ... At a time when real estate has been so slow. Sales have been slow. We had a really good month.” (04:07 — Kathy Fecke)
• Memorable Quote: “More isn’t always better. Look at what you have and make it better.” (07:57 — Kathy Fecke)
• Example: Transforming unused land into manufactured housing for cash flow, rather than letting it sit idle (07:25).
• AI Caveats: While enthusiastic, Kathy and Dave advise always double-checking AI’s findings, due to the potential for errors (06:45).
• Tool Recommendations: Claude (strong for business), Gemini, and anecdotal reports of a new real estate company releasing advanced AI analytics soon (05:54).

3. Henry Washington’s Resolution: Stabilization and Paying Off Debt (12:15 – 18:07)

• Goal: Shift focus from acquisition/growth to stabilizing troubled assets and paying off two properties in 2026.
• Three Investing Phases: Growth, Stabilization, Protection. He’s now moving from growth to a heavier emphasis on stabilization and protection (12:45).
• Portfolio Challenges:
  • Dealing with properties “bleeding” money, such as a duplex hit by flood and a $40k remediation bill (14:06).
  • Multifamily assets facing costly city-mandated repairs (14:44).
• Target: Pay off two properties and fully stabilize four underperforming assets.
• Reverse Engineering: Rather than setting an arbitrary number of flips, Henry figures out how many projects he needs (about 15 annually) to fund these goals (16:17).
• Long-Term Vision: Pay off one-third of his portfolio within ten years—“If I end up with half that paid off, that’s still going to put me in an extremely strong financial position in 10 years.” (17:20)

4. Dave Meyer’s Resolution: The “End Game” and Retiring on Rock-Solid Rentals (25:09 – 30:35)

• Goal: Begin repositioning his portfolio with a 10–15 year “end game,” transitioning back into carefully-selected, high-quality rentals (27:18).
  • Spent first decade buying and self-managing Denver rentals; next five years abroad, focused on passive investing and lending.
  • Now aims to build a “retirement-ready” portfolio: low or no debt, only assets he wants to hold long-term.
• Strategy Shifts:
  • Considering 15-year (vs. 30-year) notes to accelerate debt payoff.
  • Trading some passive investments for ownership of select rentals.
  • Targeting higher-quality assets and recognizing improved opportunities, especially in multifamily (29:19).
• Vision: “I want the portfolio that I can retire off of and that I wouldn’t need to touch if I didn’t want to for the rest of my life.” (27:35 — Dave Meyer)
• Acknowledge Longevity: Like Henry, sees this as a decadal plan, not a one-year fix.

5. The Case for Optimization Over Growth

• Both Kathy and Henry, along with Dave, articulate that their focus on optimizing and protecting what they own now is part market-driven and part a function of their maturity as investors (18:51 – 19:58, 21:26).
• Memorable Quote: “At some point, I have to get to a place where I am protecting the assets I have so that I have paid off assets to pass on to my children.” (20:43 — Henry Washington)

6. The “Why” of Real Estate Investing

• Hosts reflect on the bigger picture—real estate should enable a better life, whether through travel, time with family, or financial legacy (30:59 – 31:31).
• Closing humor about starting an Anthony Bourdain-style real estate & travel show (30:35).

Notable Quotes & Memorable Moments

• On AI and Optimization:
  “Using AI to optimize our portfolio is my goal for real estate.”
  (Kathy Fecke, 03:25)

• On Paying Off Debt:
  “My goal for 2026...is more focused around stabilization, optimization, similar to Kathy, and paying off debt.”
  (Henry Washington, 12:56)

• On Strategic Reverse Engineering:
  “Thinking about it like what do I need to do and then sort of backing into the minimum amount of work.”
  (Kathy Fecke, 15:44)

• On Legacy:
  “The overarching goal for my real estate business is for my children to be able to be the people they’re called to be and not the people they have to be for money.”
  (Henry Washington, 20:57)

• On Longevity and Enjoyment:
  “If I can get myself to a point where I don’t ever have to flip another house if I don’t want to, but I can still choose to, like that’s ideal.”
  (Henry Washington, 28:59)

Timestamps of Key Segments

• 02:39 – Kathy’s AI optimization journey in real estate
• 04:34 – Using AI for insurance policy review
• 07:25 – Turning raw land into a cash-flowing asset
• 12:15 – Henry’s pivot from growth to stabilization and debt reduction
• 14:06 – Dealing with a flooded duplex and unexpected expenses
• 16:17 – Financial modeling: the number of flips/projects needed
• 17:20 – Ten-year goal: pay off a third of the portfolio
• 19:07 – Kathy and Henry reflect on optimization vs. growth
• 25:09 – Dave’s “end game” planning for retirement and recession-resilience
• 27:35 – Structuring a portfolio to be “retirement-ready”
• 30:35 – Dreaming of a real estate & travel show

Tone & Language

• Friendly, candid, and practical—full of shared laughs, honest admissions, and open talk about challenges and pivots.
• The hosts blend strategic talk with relatable reflections on why they invest in real estate, often bringing family and lifestyle to the fore.

Summary Table: 2026 Moves from the Hosts

| Host | Shift/Strategy | Main Actions | Ultimate Goal | |--------------|---------------------|--------------------------------------------------------|---------------------------------------| | Kathy | Optimization via AI | Use AI to analyze, restructure, and improve holdings | +10% cash flow, maximize existing assets | | Henry | Stability & Protection | Stabilize underperformers, pay down debt, plan for legacy | Pay off 2 props in 2026, 1/3 by 10 years | | Dave | End Game Planning | Rebuild a long-term, resilient, low-debt rental portfolio | Achieve “retirement-ready” status in 10–15 years |

Conclusion

This episode offers a rare, behind-the-scenes look at how veteran real estate investors recalibrate after a challenging year—choosing optimization, stability, and legacy-building over unchecked expansion. Their candor about struggles and evolving priorities, as well as curiosity about new tools like AI, make this a resonant guide for real estate investors looking to set their own resolutions, with eyes on both profits and purpose.