All Forum Posts by: Hersh M.

Interesting recent article - http://www.commercialappeal.com/story/money/2017/03/17/memphis-leads-nation-house-flipping/99249996/

Memphis is No. 1 in home flipping.

"Flips and out-of-town investors inflate the price of houses for working Memphis families, which helps keep them in rental housing, Byrd indicated. Renting instead of building home equity eliminates a common way for working families to accumulate wealth."

@Curt Davis General question - why do you think the Memphis property prices hardly go up in spite of such high demand especially from turnkey investors? Is there a lot of supply? 

@David Faulkner Just checked Zillow for both Memphis and Phoenix price history. Median Phoenix price went from 100k in 2011 to about 200k right now, still below its 2006 highs around 250k. Good catch. But its a cash flow game, right? Or are you using that equity?      

https://www.bloomberg.com/news/articles/2017-02-23...

As Wall Street backs off of buying rental homes, small investors are picking up the slack.

@Arlen Chou Do you know if these areas that got flooded were officially part of SC county flood zone maps? Do most people here in the bay area buy flood insurance? I recently moved here and I am hearing this weather this year is very unusual.

Thanks @Andrew Postell. So I guess the real estate and jobs and stock market are all tied together. Currently unemployment all over the country is low, so almost all the markets have moved up. Since economy is strong (atleast as per govt data), FED is thinking of raising rates.  So you think layoffs would be the only major reason for a price correction? I guess its the chicken and the egg problem.  

I am looking at 30 year mortgage rate chart here - https://ycharts.com/indicators/30_year_mortgage_ra...

From end of Oct 2016 to end of Dec 2016, just in 2 months, rates have gone up from 3.5% to 4.3%. Thats a 23% rise in rates.

From what I have read about real estate, interest rates are one of the few major factors that affect real estate markets. I am curious to see if this increase has impacted the real estate demand in the markets you are familiar with. If yes, why? If no, why? 

@Alex Balan Dont forget to look at the class of the property/area. Also consider if you are open to property that needs repair/rehab. 

@Diane G. How are the expenses like for SF condos? 

@Rich N. so you use a different form of payment/account for that separate receipt? 

Thanks all. So overall, it seems like state being one way or another doesn't make any difference but a very local strategy should be considered e.g. appreciation vs cashflow (which might be independent of political majority).