All Forum Posts by: Jim Horne

@Doug Smith

Thanks Doug. I love that movie but I was always suspicious that there was a bit of over dramatization. Appreciate the tips!

@Will Barnard

Thanks Will, it’s been a great career and I’ve really enjoyed opportunity to serve.

I remember you mentioning your thoughts on an LA bubble at a meetup I attended in Manhattan Beach last year and it definitely got my attention. The area we live in is a bit of an urban island (one block any direction and the market takes a step down) with a top tier Elementary school that’s attracting a lot of folks priced out of the Manhattan and El Segundo markets that really want to own a place. That’s definitely putting some upward pressure on prices in our area, especially for homes purchased from retiring or aging homeowners that have been updated like ours. Thanks for the pointers!

Not looking to debate whether we’re in a bubble or not, just how the pros out there do the analysis to decide for themselves when it’s time to offload a live-in flip. Here’s my situation:

- Military, using a no-money-down VA loan

- Bought a live-in flip property at $645K and invested $35K in moderate improvements

- Purchased in the Los Angeles county, South Bay Area (Redondo Beach, Torrance, etc)

- Current market value is ~$723K; lots of folks are talking about a bubble again

How would you start analyzing the market to determine if we’re nearing a market correction? What factors, trends, statistics, etc would you consider? How do you factor in “micro-markets” such as those in Los Angeles where

Property Values can vary by large swings ($100K or more) from one street to the next? What resources (websites, etc) would pull the data from?

Again, not looking for opinions on market bubbles. I’m looking for how intelligent investors quantitatively analyze and determine what what a market is doing in their local area.

Thanks!

@Simmy Ahluwalia

Thanks, I appreciate the help!

@Jaysen Medhurst

Thanks!

@Stephanie P.

Thanks! That is exactly what I was getting at. She is working with a broker but not a investor friendly one so I think she needs to look elsewhere. So far the best she's found is a 3/1 ARM.

Thanks, Ryan.  That's very helpful.

@Ryan Naylor

I don’t know her exact ratio, just that the banks she’s spoken with are concerned with her “low salary”, which seems a bit silly given that she chooses to pay herself as the owner at whatever number makes sense.  It just seems like an arbitrary parameter that works for the majority of folks in the workaday world, but not someone in a far better financial position like her.

Thanks guys!  I really appreciate the advice.