Podcast Summary: BiggerPockets Real Estate Podcast – “What We’re Buying During This Housing Correction”

Date: November 28, 2025
Host: Dave Meyer
Guests: Henry Washington, Kathy Fettke
Theme: Real Estate Investing Strategies in a Market Correction

Episode Overview

This episode is a special crossover from the BiggerPockets sister podcast, On the Market. Host Dave Meyer is joined by seasoned investors Henry Washington and Kathy Fettke to discuss practical strategies for buying real estate during the current market correction. The conversation centers on reframing the correction as an opportunity, adjusting expectations, and focusing on timeless investment fundamentals. The trio shares their investment philosophies, mistakes, and actionable advice for thriving in less “easy money” environments, aiming to inspire both new and experienced investors.

Key Discussion Points & Insights

1. State of the Current Housing Market

• Correction, Not Crash:
  • Dave sets the stage, noting that home prices have been flat to slightly down in real terms for three years (01:30). While some markets like Florida and Texas have declined, this is a correction not a crash (01:40).
  • Quote: “We’re in a housing market correction. It’s not a crash, but it’s a different market than we’ve experienced for the previous few years.” — Dave (00:41)
• Expectations vs. Reality:
  • Henry observes that, compared to the pandemic years, today’s market “feels” worse than it is because expectations are skewed by recent historic highs in appreciation and speed of sales (03:55).
  • Quote: “The problem with real estate right now is not the market, it’s expectations.” — Dave (05:05)
• Normal Cycles:
  • Kathy and Henry emphasize real estate’s cyclical nature, and point to this correction as a normal—and even welcome—disruption for experienced investors looking for less competition (06:01–06:43).

2. What Experienced Investors Are Doing Differently

• Adjusting to New Dynamics:
  • Henry shares that he is returning to fundamentals: buying at the right price, ensuring multiple exit strategies, and accepting deals that don’t rely on rapid appreciation (20:10–22:16).
  • Kathy stresses that her approach hasn’t fundamentally changed: “Buy and hold in solid, landlord-friendly markets where the average person can afford the rent” (31:46).
• Cash Flow is King:
  • Consensus among all is that, in a market with flat or declining prices, cash flow becomes the most important metric (33:42, 34:00).
  • Quote: “I think cash flow is the number one thing to be looking for right now. I’ve never bought a non-cash flowing deal.” — Dave (33:42)
  • Buy in locations and at prices that make sense now, treating potential appreciation as a bonus rather than a strategy.

3. Multiple Exit Strategies & Underwriting Conservatively

• Deals With Options:
  • Henry provides a real case: buying a property at a steep discount ($102K for a home potentially worth $270K). If the flip doesn’t pan out, it can be rented at a solid cash flow (19:03–22:16).
  • Quote: “If I try to sell it and I don’t get what I want, I can throw a tenant in it and I can rent it for $1,800 to $2,000 a month. And it’ll cash flow at that price.” — Henry (20:13)
• Conservative Analysis:
  • All three agree to “underwrite scared”: assume zero rent growth, potential further price declines, and only do deals that work even if things get worse (36:16).
  • Quote: “Underwrite scared is kind of a perfect way to put it.” — Henry (36:43)
• Be More Disciplined:
  • Unlike in 2021-2022, now every dollar counts; overpaying can have serious consequences. Don’t “force” deals with thin margins.

4. Lessons From Previous Cycles & Sticking to Your Plan

• Patience Wins:
  • Both Dave and Kathy recall “missing out” by selling too early, and the importance of sticking to your long-term buy-and-hold strategy even when the market feels stagnant (16:36–18:21, 30:29–31:23).
  • Quote: “If you miss that (growth) period, then you’re waiting another seven years… I want to get into the market so I don’t miss it.” — Dave (18:21)
• Emotional Control:
  • Success often comes from managing your own biases and not getting swayed by others’ opinions or hype (31:23–31:46).

5. Segment-Specific Trends

• Single Family vs. Multifamily and Syndications:
  • Single family distress is limited, but investors need to focus on true value since quick sales at high prices are history (09:00–09:29).
  • On the syndication/development side, Kathy is shifting back to stable, cash-flowing properties rather than risky long-term land deals (33:46).
• Short-Term Rentals:
  • These soared during COVID but have since cooled. Now, operators must up their management game; “lazy” strategies no longer work (35:24–35:50).

Notable Quotes & Memorable Moments

• On Investor Maturity:
  • “You all just growing up. It’s part of that … You had your first little fight, and then you get through it, and then things are better, right?” — Kathy (06:02)
• On Role of Investors in Corrections:
  • “A lot of what happens in a normal correction is investors set the floor for how things can fall …” — Dave (09:34)
• On Avoiding Speculation:
  • “It’s really just sticking with things that you know are going to work and not speculating. I think that’s one of the main takeaways from this conversation.” — Dave (39:16)

Important Segment Timestamps

• 00:41: Episode setup and framing the market as a correction, not a crash
• 03:11: Kathy’s perspective on corrections and the value of long-term holding
• 05:05: Dave and Henry discuss the “expectations problem”
• 06:43: Henry on cycles and excitement for buying deals in corrections
• 09:34: Dave on role of investors in setting the market bottom
• 16:36: Kathy on historical fear during downturns and importance of fundamentals
• 19:03: Henry’s example of structuring a deal with multiple exit strategies
• 21:36: The critical importance of buy discipline today
• 29:40: Kathy on how her approach (buy and hold in solid markets) hasn’t changed
• 33:42: Group agrees that “cash flow is king”
• 36:16: On underwriting “scared” and only chasing exceptional deals now
• 39:09: Henry: “I like sleeping at night when I buy deals”

Actionable Takeaways

• Ground Your Investing in Fundamentals: Prioritize cash flow, quality assets, and good locations
• Expect Flat or Slightly Declining Prices: Don’t rely on appreciation—treat it as a bonus
• Underwrite Conservatively: Build zero or negative growth into your models
• Require Multiple Exit Strategies: Only buy assets that can be profitable as both rentals and sales
• Be Patient and Disciplined: Don’t overpay—walk away from marginal deals
• Upgrade Your Management: For short-term and mid-term rentals, effort and quality matter much more today
• Stick to Your Plan: Don’t let market noise or peer actions knock you off a proven long-term game plan

Tone & Style

Engaging, candid, and slightly humorous, with an optimistic slant on the current correction. The hosts encourage investors not to panic but to double down on discipline and fundamentals, seeing this market as a time of opportunity rather than dread.

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