I currently live in Houston, Texas and am looking at purchasing a property in East Texas, just north of orange Texas.

Since you are looking to buy and hold, what he does and how he does it may actually have very little application to your situation as you are comparing apples and oranges.

You are talking about apples and oranges with flips and rentals.

In Orange County, CA I think in certain price ranges, under $1m that we've hit bottom.

I even have an acquaintance that is a Rich Dad advisor who I believe is a solid guy.That being said, if you read the original book, "Rich Dad, Poor Dad" your BS meter should have either become fully deflected or at least pointing well into the orange area.

In Los Angeles County and Orange County I know of true 100% fix and flip programs, so the leverage doesn't get any better than that.

@James WiseGo to Home Depot and buy some of those orange, 5 gallon Homer Buckets.

To throw out ideas like the present value of money in relation to a sale price, is apples and oranges.

And, some assessors use past sales amounts and adjust for inflation, so if the property has not been held very long by the current owner, the current assessment might be close to the market value again.It's better to think of the two like apples and oranges, because usually that's how close they are...both fruits from a tree but with much different tastes.The question asked by the Realtor above in OP, may be born out of the lack of knowledge of that Realtor.

Now I have relocated here from Orange County, CA and help other investors get set up down here even offering PM services or airbnb cohosting.