All Forum Posts by: Cody Krecicki

In a world where the housing market reigns supreme, the effects of mortgage interest rates on house price appreciation are nothing short of legendary. Like two opposing forces locked in an eternal battle, the rise and fall of mortgage interest rates have the power to shape the destiny of home values across the land. However, there is another player in this epic saga - payment constraints. These financial barriers, born of economic limitations and lending standards, hold the key to unlocking the true potential of mortgage interest rates.

Read Here: https://tweetsift.substack.com...

The long drawn out version explaining things.

A decline in housing services inflation can hurt real estate investors, as it can lead to lower property values and rental income. This can make real estate investments less profitable, especially if the investor owns property in an area with declining demand. I'll keep holding my real estate.

A decline in housing services inflation can benefit renters, as it can lead to lower rental prices. This can make it easier for renters to afford their housing, especially if their incomes are not increasing at the same rate as housing costs. Look forward to having more money for a hotdog.

Homeowners with fixed-rate mortgages may not be directly affected by declining housing services inflation, as their monthly mortgage payments will stay the same. You may benefit indirectly if declining inflation leads to lower property taxes or maintenance costs. I'd sure hope.

Homeowners with adjustable-rate mortgages may benefit from declining housing services inflation, as their mortgage payments may decrease if interest rates fall. This can make it easier for them to afford their homes and may improve their financial situation.

A decline in housing services inflation can hurt construction workers and contractors, as it can decrease demand for their services. This can lead to lower wages and fewer job opportunities in the construction industry. Which could mean cheaper renovations and roofs, etc.

Raw Source: https://www.federalreserve.gov/newsevents/speech/files/jefferson20230227a.pdf

Summarized Source: https://tweetsift.substack.com/p/ai-summarizes-a-speech-by-governor

Update. We have been renting it on a 31 day roll to beat the STR rules.

I'd like to announce it has stayed steady at 80% vacancy all year.

• Employment increased in 346 of the 355 largest US counties from September 2021 to September 2022.
• National employment increased by 4.3% over the year.
• Average weekly wages for the nation increased by 6.7% over the year.
• Midland, TX had the largest third quarter over the year wage gain at 13.9%.
• All of the 10 largest counties had over the year percentage increases in employment.
• New York had the largest employment percentage gain at 6.6%.
• Miami Dade, FL experienced the largest over the year percentage gain in average weekly wages at 8.8%.

Original source: https://tweetsift.substack.com...

Sad to see the responses and knowing what I’d have to do.

Looks like this things a tax write off and a equity gaining machine. But not a rental. 

We have a second home out here in the San Bernardino mountains west of Lake arrowhead.

We just learned that we have to get every past permit that’s been expired since it was built in 1936. We have to spend $50,000 on a new parking deck that’s 9 x 18 per vehicle.

They don’t like that my ceilings from the sides of the beds aren’t over 7 feet because it’s an A-frame loft upstairs.

We were going to try renting it out monthly but the pool of renters is just awful.

It saves us about $15,000 a year on our personal income taxes between the interest and the property taxes. It’s our vacation house.

I don’t really have a reason to rent it out but the amount of money we could be making on this every four days is the mortgage each month.

We see a huge amount of people out here renting these things short term without the permit which is a $1000 fine if they catch you.

Should I just give up the dream of renting out this place and making 3000 bucks a month?