Housing Flipper's Flop - Many Are Wiped Out

[Bogan7]

Quote from jdeezero05:

i just bought my first home, real tiny 2 bedroom for $50k

About half a mile from the big college here, will eventually rent it out when i want to upgrade.

I'm just starting to learn about real estate investing, great time to start to learn now. you can buy cheap educational material from the idiots who are getting their heads taken off here.

Great time to start watching the price action in your area too. I plan on buying a duplex to rent out in the next recession.

Where can you buy any sort of home for 50k?

 

[jficquette]

Quote from makloda:

We aren't really seeing any fallout in the labor market yet. If I were to hope to pick up real estate for cheap then

1. I'd wait for the labor market go into turmoil, with unemployment rising rapidly
2. Wait for the point that unemployment appears not on the rise and slowly levels out
3. Then buy foreclosures for cash

These processes take years and years. No rush to buy right now. For all we know, we don't even know if an actual housing crash is upon us.

That's because Mexicans build all the houses in Az, Nv, and So Cal.

They just melt into the woodwork when the work stops and either go find another labor job or go back to Mexico.

Phantom workforce lol.

John

 

[Bingoking]

Quote from jficquette:

That's because Mexicans build all the houses in Az, Nv, and So Cal.

They just melt into the woodwork when the work stops and either go find another labor job or go back to Mexico.

Phantom workforce lol.

John

The So. Cal. economy could not survive without it's illegal immigrant work force.

 

[Bingoking]

But I was once a plant manager in San Diego and most of my crew drove over from TJ everyday. I would put that crew up against any crew in the country for production output.

 

[jficquette]

Quote from Bingoking:

But I was once a plant manager in San Diego and most of my crew drove over from TJ everyday. I would put that crew up against any crew in the country for production output.

I lived there 8 years. Mexicans are the hardest working people I have ever seen.

John

 

[Hydroblunt]

Quote from Lights:

Three options, buy, rent or homeless/live with mom. Rental prices are skyrocketing. Time to buy a house. It's cheaper.

It's actually the other way around. Rent prices get locked in with leases and a certain % increase. Unless it goes at market, in which case, the rent price may be absurd.

Either way, in most of USA, it is impossible to get a mortgage payment equivalent to the rent of the same place. Not to mention insurance, property taxes, upkeep, etc.

 

[Pa(b)st Prime]

Quote from Hydroblunt:

It's actually the other way around. Rent prices get locked in with leases and a certain % increase. Unless it goes at market, in which case, the rent price may be absurd.

Either way, in most of USA, it is impossible to get a mortgage payment equivalent to the rent of the same place. Not to mention insurance, property taxes, upkeep, etc.

Buyers get the mortgage interest deduction. To higher income earners that loophole closes the gap between out of pocket rent vs. debt service.

You can't compare payments because a mortgage has principal repayment included.

 

[Bingoking]

I've noticed on the "Flip This House" (or whatever its called) on TLC they revisit people they filmed last year. Most of them did not achieve the results they had hoped for. There's a flip on my street that has been for sale for over 6 mos. now.

 

[IanMacQuaide]

"Rent prices get locked in with leases and a certain % increase. Unless it goes at market, in which case, the rent price may be absurd."

I own and rent out 2 sfh's.
I don't do leases, just month to month.
Rents are at mkt, and I can raise them anytime I feel like taking a chance on losing the tenants I now have.

Local landlords that I talk to are going "no lease".
It protects us more than a yr lease. No evictions. Just a 30 day move out notice.
Anything after that and they're trespassing.

 

[OldTrader]

Quote from IanMacQuaide:

[BIt protects us more than a yr lease. No evictions. Just a 30 day move out notice.
Anything after that and they're trespassing. [/B]

I'd suggest you review the landlord-tenant law in your state. Following a 30 day notice, after which the tenant does not move out, they are not "trespassing". They are now a hold-over tenant, who you will have to evict under the provisions of your state law.

OldTrader