All Forum Posts by: Mike Terry

At the beginning of this year my partner and we’re considering building new houses due to the short supply of distressed properties in our market. Since then lumber prices alone are adding $24,000 to the cost of a typical single family home. This will continue to pressure affordability and discourage new home development at a time of record demand. Existing homes are appreciating at a rate reminiscent of the early 2000’s. When will rising costs slow the demand and to what extent? Share your thoughts.

@Megan Wakefield

Great Question.  We are using real estate as a retirement strategy.  I want to be able to travel, inbed myself in some foreign cultures... a deeper look than tourism.  I also want to take care of my aging parents.  They are 87 and 83 and I know they will need me more in the future and I am far away.  So the freedom to work when I can, wherever I am and have some passive income to cover my basic life expenses is the plan.  So far so good with 7 doors and about 2k in monthly cashflow.

@Joshua McMillen exactly the correct thought process. Know the rents, know your expenses make a very calculated decision. Cash flowing Real Estate is forgiving if there is a market correction during your ownership period. Make sure you have adequate reserves! Good luck with it.

Hi @Joshua McMillen.  To answer your question.  In general most markets are in a sellers market.  Of course all real estate is local.  IS your market experience decreasing supplies (measured by listing), bidding wars, multiple offers, high percentages of cash deals, decresing days on market, rising median home prices.  If so this and other anecdotal evidence would point to a sellers market.  AS for the future, I have no idea and neither does anyone else. It stands to reason that the market will slow at some point, but we are also in unprecedented times and may be subjected to significant inflationary pressures.  Tyring to predict the future is a fool's game  If you trying to by, be patient, analyse a lot of deals a good one will come along and the numbers and condition of the property will help it stand out to you.  There are always deals out there if you are patient and work at it.  Good luck!

@algopyles @Jackson Babcock That is what is so slimy about the financial media... the uneducated can get taken for a ride. I am a do it yourselfer type.  I see counsel from professionals when needed.  Beware of the talking heads!

Do you think this guy makes money selling financial products?  Always view these kinds of advice critically..."consider the source" and what biases they may have. https://www.cnbc.com/2021/04/0... Most of us would differ.  My long term rentals return 10% plus before any additional benefits like appreciation and tax advantages.  My flips are not investments, they are a business, but my returns blow away the stockmarket (this too is a generalization...I am guilty of oversimplification also). I think discussions of best vehicles of wealth creation are always relative.  Simple statements like these in the article and video are not good or thorough journalism and are misleading. Your Thoughts?

@Stephen Jones have you considered the demand for 1 bedrooms in your market?  I know in some they are harder and take longer to rent.

Wise words my friend!  You and I think a like.

@Allen Wu No, only if the property was on a salt water canal, although it is only $400 a year

Here is the latest interesting national statistic and the some Florida markets. The Rapid inflation of the Fort Myers and Orlando markets and really the whole state.  No conclusions here just some statistics to keep you informed. https://tinyurl.com/y6xyejh8