Currently underwriting 35 SFHs being purchased as a portfolio by a PE Firm in order to push rents via ADU developments.

We can also walk and lose EM (and the money we've put into inspections and PE consultation.)

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

Go find the current Price/Earnings ratio P/E for the stock markets. 

Is the President-elect planning to privatize Fannie and Freddie? If so, why? I didn't realize that there is a problem that merits fixing? What am I missing? Is this a give-away? 

S&P 500 is at a PE ratio of 30.  

Pé: Hi Courtney, it seem you are bullish on the greater NOLA market? 

Perhaps the SFR market is overvalued now and 1% rule is just a simple valuation tool like a P/E multiple in equities telling people to stay clear.       

I have this theory that basically the stock market can grow faster than the fundamentals more so than housing, reason being when people put money into their 401k or whatever they are just throwing money in, not looking at p/e or whatever, the stock market is in part just an index of Americans excess savings plus it’s a unstated policy of the government that stocks go up, where as housing people are obviously very very aware of how much thier monthly payments is/ how much rent is, plus it seems that is actually a push to lower housing prices at least relative to inflation.

@Mostafa KoperlyMSO's like DSO's look for opportunities to exploit nationwide because they are backed by PE.