All Forum Posts by: Hersh M.

http://www.businessinsider.com/housing-bubble-2-ha...

Interesting article. The Dallas magazine cover is also very catchy. 

Overall, we are seeing Fed interest rates so low and for such a long time, that it has never happened before if I am not wrong. Interesting times we live in.

Home ownership rates declining. Hence rental vacancies declining too and rents rising. While wages  stagnate. 

@Shannon Sadik

+1 on Frank's Cash Flow book. Thats where I first learned about these different ways of evaluation. There is a lot more math involved than I first assumed. 

Out of curiosity, I was just looking at a few SFHs in Des Moines. 

It looks to me that the 1% rule is still being met on majority of those but not the 2% rule. 

Also for some of the homes, the prices haven't changed over the last few years but I saw a few where there was about 20% rise since 2012. 

I know these are very broad generalizations but would you guys who are investing in Iowa agree with this assessment? And are you still buying aggressively? 

http://www.bloomberg.com/news/articles/2015-07-23/...

4 biggies from Texas. Congrats to those who bought from 2009-12. 

Whats up with Iowa? Any major factors? (Sorry I dont know much about industries there)

BTW, I was just listening to podcast 131 and it was good to hear that experts like Joshua Dorkin agree that things are getting pricey and its starting to feel like 2000.

@Brandon Turner

 What would be cool from a data analysis perspective is if we could plot the number of newbies joining BP over the last 7 years or so. Very likely an exponential graph?! 

Thanks 

@Bill S.

@Walker Hinshaw

 Thanks for your views. I think these markets that are mentioned are far far away from satisfying even the 1% rule (even with those high 3k rents), let alone the 2% rule. And I am not sure if betting on appreciation is the right thing to do since I have no idea what the future might be. 

Are you seeing similar things there in Denver? 

@Amaf J.

Assuming numbers are correct, and assuming 30% tax, thats about 6k CF on about 10k down. 60% sounds like an excellent deal.

I guess the main question is how confident are you of those numbers? Did the realtor help with those or did they come out of googling? 

Might be worth it to contact a few other local realtors/investors there and confirm the numbers. 

I thought this article was quite interesting and kind of reflects what I see and hear these days - http://blogs.wsj.com/economics/2015/07/20/signs-of...

My understanding is that real estate like most other markets is cyclical. But I also understand that it is impossible to predict the future with certainty.

What do the experienced members here think about the current state of real estate market? Is buy and hold for cash flow currently working for you (assume > 10% cap rate) ?

Also are there any podcasts that cover such a topic?

Thanks.  

@Mark Shaffar

Hi Mark, I have tried to find latest price to rent ratios using google in the past but never had any success. There are very few pages with that ratio and the data there is usually outdated. Have you had any success? If so, what site do you end up on?

Thanks.