the trend that company move to Texas

[Carlos Ptriawan]

so based on these recent huge tech layoffs in CA, there's structural job changes that due to Fed Interest Rate, tech company can not longer operating in sustainable fashion in CA, so they have to move operation. Either to Texas, to India to Arizona or to Florida. So even company is moving out. This would obviously trigger more out-migration. One biggest S&P company is saying to their employee, either you move to Texas or we give you severance package !

I think the trend is pretty clear for next decade. There is more growth in TX,AZ,OH,WI,FL/India most likely. This is the trend that's very apparent. Texas is good in particular because cost of doing business is "moderate" with ample size of headcount available in the market and practically has no housing issue. What do you see in Texas ?

[Alecia Loveless]

@Carlos Ptriawan Many areas in Texas have seen unreasonable property tax increases over the past few years. My sister owns 17 SFH that she bought in Denton TX more than a decade ago and refinanced to low interest rates during the pandemic. Most of them have less than $130,000 left on their mortgage but have appreciated to around $350,000. Their property taxes have gone up by approximately 60% each year for the past 3 years and 40% for several years before that. She barely breaks even now on these properties that were once her retirement plan and if she has any unexpected expenses forget it, those all come out of her pocket.

All of the tax dollars are going to widen roads to support more people moving to the area and to build more schools to accommodate the influx of kids. There are no benefits to the property owners that aren’t using these things.

She wanted a new investment in Texas and showed me a 6 unit apartment building that was $1.4M and after expenses LOST $3875/month. I told her to forget ever buying a property that lost money unless maybe it was waterfront and to let me find something. We bought a 5 unit property for $340K that cash flows$2000/month. What a difference!