Some day I’m going to make a “copy and paste” why I wish people would stop worrying about the 1% rule that has almost nothing to do with any market where houses cost over $150k.
1) $300k house that rents for $2900 and costs $2200 in payments with seller will let you have it with $10k down. ‘Sorry can’t buy it, doesn’t meet the 1% rule”
2) $50k house that rents $550 a month and payments are only $500 and you can get in with only $5k down. “Sweet, I’ll take 20 since it meets the 1% rule...”
Go the other way...
3) $5 million dollar house, rents for $50k/month. Payments are $60k/month but you can get in for only $10k down, ON A $5 MILLION DOLLAR HOUSE, SWEET DEAL! And it meets the 1% rule.
Ps. Don’t forget, the same people who bring you the 1% rules say you should expect 1/2 the rent to be spent on expenses other than the mortgage payment. So if it doesn’t cash-flow at 1/2 rent after expenses you shouldn’t buy it either.
Las Vegas, Seattle and San Francisco continued to report the highest year-over-year gains among the 20 cities. In June, Las Vegas was up by 13.0 percent, with Seattle following closely at 12.8 percent. Prices were higher in San Francisco by 10.7 percent. Six of the 20 cities reported greater price increases in the year ending June 2018 versus the year ending May 2018.
@Terry Lao I just had a client send me that Seattle article. I think as long as job and population growth continue, Vegas should remain near the top of the price gain list for a while. Time will tell.
The airport broke the 10 year old (August 2007) “monthly visitor” record 4 times in the last 12 months according to the paper today. 4.42 million/month. July/October 2017 and may/July 2018. New terminal is probably helping with that as it still rarely seems as busy as some other airports I’ve visited, at least in terms of security lines begin super short.