Red Vs. Blue States real estate investing

[Logan M.]

You have to take this post with a grain of salt but I have a lot of people that ask me where I buy and where I don't buy.

For the most part, I invest in Red states, meaning states that tend to vote for Republican candidates but let me add a few layers to this:

1. Demographics are more important than any other factor at a macro level.

2. Some Red states like Mississippi have terrible trends when it comes to housing and an incredible amount of poverty. I avoid states like this.

3. Some states have bad weather, being a MHP investor I avoid Florida, Texas, and Louisiana. I have lived in Texas and Louisiana. 

4. The ideal climate is dry with few weather extremes.

5. If you invest in areas utilizing government funding Blue states will outperform Red states because they typically have more funding for low-income housing available.

[Scott Trench]

I don't think ownership has anything to do with forum moderation.

I'm following the thread and watching. 

My stance, again having nothing to do with ownership, is that politics and real estate are intertwined. BiggerPockets is not a place to discuss the merits of one political party or school of thought over the other. But, it is a place where certain discussion about how political policy has and potentially will impact real estate prices, values, and investor returns. 

Discussion like this is something to watch closely. 

If we devolve into discussing the shortcomings of US presidents or specific politicians, probably time to close the thread. 

If we devolve into name calling, and inferring that one political party or group are morons, probably time to close the thread. 

But, if we can stick to how political policy impacts real estate outcomes, we can have a good discussion. Examples: 

- It's worth noting that rent control often accompanies a slowdown in construction, repositioning projects, and otherwise throttles supply. This has implications for investors. 

- It's worth noting that certain states have foreclosure laws that make it easier or harder to take possession of a property. This has implications for investors. Good? Bad? States where it is hard to foreclose can change risk profile on loans, but also limit competition. 

- It's worth noting that states, both red and blue, are starting to pass statewide laws that effectively rezone land across the state allowing ADUs, or allowing multifamily construction. This has consequences - both in terms of making projects accessible and profitable to savvy investors, and in inviting more supply, which may slow rent growth over time. 

These are discussions worth having. 

I think we can even go so far as to allow people to respectfully say whether they agree or disagree with a policy. But, when we get into the all-too-frequent world where community members directly or indirectly insult people or parties, we're over the line. We won't go there on BiggerPockets.

I think that with this prompting, the thread can stay up. But, if it devolves, as sometimes happens, into ridicule of one political party or school of thought, then it will be time to close it down.