This is speculation because no one knows how much leverage is in the system.The other place you will find supply is through AirBnB.

@Brandon Rush I like what Allan said because it demonstrates the mindset of a market that may have moved from investing to speculating.  

No worry, owner is speculating homes will appreciate more and are bullish on the equity.

He tells me real estate prices are at their all time peak with lots and lots of new construction.Prices seem to be out of sync with the local earning capacity as well which to me is a strong indication of speculation.

I will see today what he will say but it seems to  me he may be motivated to call me back and seems to me he may not have been offered that 70 to 80k just from speculation.

What's the difference between speculating future (continued) market appreciation vs. buying in the PRE-GENTRIFIED areas because "it looks" like that's where the attraction is headed? 

I could speculate that it's because THEY are speculating about the disconcerting Silicon Valley VC news, but I cannot prove that. 

While not a lender myself, nor an attorney, I can say that many of my former CRE industrial clients have bought buildings that they originally occupied 51% or more and then either bought another larger building to accommodate growth or reduced in size or went out of business and leased the entire building(s) out to tenants.I think the occupancy rule is in place to discourage investors from accessing SBA loans for the simple privilege of using these funds for speculative real estate investment.

While this is already a speculative investment, it's also hard to determine if it offers a lot of investor protection since it is mostly deregulated.

Which is money I can use on more 'speculative' properties that might not cashflow as well.