[Alfisti]

Jesus you americans have a confusing tax system, so many loop holes, honestly man your entire system of governance is massively complex and bloated. You succeed in spite of yourselves.

And I don't buy this narrative that the job loses only hit the entry level workers so everyone else is unaffected. Consumption should be WAY down, killing off jobs in every sector and at every level but it's just not happening. Reality will set in over the fall as the government takes away the hand outs, then you will see a massive crash and a huge dent on the economy. Those payments, both in the US and Canada, are keeping consumption turnng, when they stop .... look the fuck out and watch your back.

[cmyx6go]

Originally Posted by 9M71

Ah, bummer. Congrats on the quick sale regardless. I'm on the other end of the table and been shopping around SI for almost 2 years now but its tough. Finding a home with a 2 car (or larger) garage in SI w/o major reno for <$1m, and convenient for commuting to the city, is like finding a needle in the haystack. The ones we do, we're getting beat out by cash offers even if we go in @ asking. Might need to become new jerseyians at this rate...

I looked for the house I just sold for almost 3 years. I wanted a a nice size lot with a pool. Problem was that most houses on the larger lots were too big for me, or they were old ranches that needed to be torn down and raised.
I put a chunk of change into this house and I swore if I ever bought another house I would only buy a turn key and move in. Freaking renovations drove me nuts.

Would have loved a 2 car garage but like you said the prices are nuts. Once you cross over to 2 car garage the prices are over $1M, and those need work. The move in condition ones in nice neighborhoods are $1.2 - $1.5.

I was up against the same thing with other buyers. People were selling for crazy numbers in Brooklyn and offering over asking as they had a chunk of change and didn't care about the comps.

Good luck.

[F32Fleet]

Originally Posted by IndyRed128i

I have many friends in real estate and from what I have heard and scene, the housing market is still on fire.

This is quite surprising to me considering the current unemployment situation, and everything with the virus.

How can there still be a high as ever demand when we have high unemployment and a recession?

Govt checks have kept unemploymed paying rent. Once that stops expect to see an uptick in rentals for sale.

Also, as others have said the COVID forbearance program has suspended mortgage payments for up to one year.

The biggest issue for lenders now revolves around selling mortgage loans which are performing at the time of sale to investors. This can be an issue since some states are moving back to phase 1 which means closing businesses.

[RickFLM4]

Originally Posted by F32Fleet

Govt checks have kept unemploymed paying rent. Once that stops expect to see an uptick in rentals for sale.

Also, as others have said the COVID forbearance program has suspended mortgage payments for up to one year.

The biggest issue for lenders now revolves around selling mortgage loans which are performing at the time of sale to investors. This can be an issue since some states are moving back to phase 1 which means closing businesses.

A lot of people stopped paying rent or mortgage even with the government checks or even though they didn't lose their jobs. When gov't put eviction and foreclosure restrictions in place, it seems like quite a few people decided not to pay. So this is a mess ahead that will need to be sorted.

https://www.cnbc.com/2020/06/16/30pe...s-in-june.html

[F32Fleet]

Originally Posted by RickFLM4

A lot of people stopped paying rent or mortgage even with the government checks or even though they didn't lose their jobs. When gov't put eviction and foreclosure restrictions in place, it seems like quite a few people decided not to pay. So this is a mess ahead that will need to be sorted.

https://www.cnbc.com/2020/06/16/30pe...s-in-june.html

The take rate on the forbearance program is ridiculously high. There are homeowners who took advantage of the program out of an abundance of caution not because they couldn't afford to make their payment.

[IndyRed128i]

And I don't buy this narrative that the job loses only hit the entry level workers so everyone else is unaffected. Consumption should be WAY down, killing off jobs in every sector and at every level but it's just not happening. Reality will set in over the fall as the government takes away the hand outs, then you will see a massive crash and a huge dent on the economy. Those payments, both in the US and Canada, are keeping consumption turnng, when they stop .... look the fuck out and watch your back.[/QUOTE]

Yeah, this was exactly my point. The economy has a trickle affect and consumption should be way down across the board.

I am stunned that we are not seeing the major layoffs like we saw back in 2007-2009. This pandemic has affected many more people, not to mention we are due for a major downturn as a factor of natural economic cycle.

[BimmerDimmer6]

I think everything is fine honestly. Other than restaurant/ hospitality I don't believe much has been affected.

Real estate should be ok.

[BMW F22]

Piggybacking on this thread: for first home, would you buy a single family home or a multi-units, live in a unit and rent them out and create cash flow?

[Conissah]

Originally Posted by Alfisti

And I don't buy this narrative that the job loses only hit the entry level workers so everyone else is unaffected. Consumption should be WAY down, killing off jobs in every sector and at every level but it's just not happening. Reality will set in over the fall as the government takes away the hand outs, then you will see a massive crash and a huge dent on the economy. Those payments, both in the US and Canada, are keeping consumption turnng, when they stop .... look the fuck out and watch your back.

But that's kind of what happened, at least from what I have seen first hand. I have been working from home since beginning of March, and am busier than ever. My wife just got a new job making more money than her last, my friend also started a new job, same with my little sister, both making more than 50k a year. I just got my house 3 weeks ago, and had a hell of a time buying. Houses were getting sniped before even hitting the market. My other friend is under contract right now in that exact situation, buying before it hits market. I got the a stim check, didn't need it, but it was cool. I could've gotten our house without it just as easily as I did with it, the people who are RELYING on these "handouts" are not the ones buying new houses...

[2000cs]

Originally Posted by BMW F22

Piggybacking on this thread: for first home, would you buy a single family home or a multi-units, live in a unit and rent them out and create cash flow?

If you’re up for managing a unit and doing the maintenance, a duplex or triplex can be a great entry point. I had a friend years ago that did that, but would only buy a property where the tenants were already in and were retired. He said they took care of the property and paid the rent on time. Built a lot of equity, had several duplexes and finally sold the lot of them and retired himself.

[BMW F22]

Originally Posted by 2000cs

If you’re up for managing a unit and doing the maintenance, a duplex or triplex can be a great entry point. I had a friend years ago that did that, but would only buy a property where the tenants were already in and were retired. He said they took care of the property and paid the rent on time. Built a lot of equity, had several duplexes and finally sold the lot of them and retired himself.

That all sounds really good. Either way it would be good to have cash flow to cover mortgage vs having to shell it out on my own. Hate to be house poor.

[Jordan's World]

Originally Posted by BMW F22

Piggybacking on this thread: for first home, would you buy a single family home or a multi-units, live in a unit and rent them out and create cash flow?

I'm in a very similar position myself and think it's a brilliant idea!

I'm still in college, so it wouldn't be anything fancy, but I'd really like to buy a fixer upper duplex or single family and rent out the unused unit/bedrooms to students. I'm single and need to be close to my University for grad school for the next 4 years, so wouldn't have any problem finding tenants. (Would prefer grad students as well).

I have looked at a few places already, and the numbers make a lot of sense, here in central FL at least. To give you an idea, single bedrooms are renting for $900/ MO near the University and I can probably get my mortgage down to around that with 20% down.

The problem is even though the numbers make sense for my use I still feel like stuff is overvalued right now, so I'm being patient and will continue saving.

There's always deals out there, so I'm constantly searching Zillow and Redfin hoping something will pop up, but so far nothing fits the bill. I also have a realtor friend who has been sending me stuff off the MLS daily, but so far nothing in the right location.

I have a decent amount saved from working throughout school, so just trying to be smart with it and hopefully it will pay off in the long term.

[RickFLM4]

$900/mo. for a bedroom? I paid $525/mo. for my first 2 br. apartment, which I split with a roommate.

Rental property is a good income source, but just be sure to research and plan for the costs and effort involved in managing the property (and make sure you watch what’s going on right now with people not paying rent).

[Jordan's World]

Originally Posted by RickFLM4

$900/mo. for a bedroom? I paid $525/mo. for my first 2 br. apartment, which I split with a roommate.

Rental property is a good income source, but just be sure to research and plan for the costs and effort involved in managing the property (and make sure you watch what’s going on right now with people not paying rent).

Yes, but I would have to furnish it to compete with other apartment complexes and town homes. I figure about $400 per room. Full mattresses and frames + a few cheap dressers. Realistically, they'd probably rent for about $800 apiece.

And you're right, its risky right now, but I feel there is an advantage as my tenants will be students. They are usually well funded and I would imagine aren't as affected by current events.

Always risk involved, but I know I can get them rented with quality tenants in a heartbeat. Would need to have their parents co-sign.

[BMW F22]

Originally Posted by Jordan's World

I'm in a very similar position myself and think it's a brilliant idea!

I'm still in college, so it wouldn't be anything fancy, but I'd really like to buy a fixer upper duplex or single family and rent out the unused unit/bedrooms to students. I'm single and need to be close to my University for grad school for the next 4 years, so wouldn't have any problem finding tenants. (Would prefer grad students as well).

I have looked at a few places already, and the numbers make a lot of sense, here in central FL at least. To give you an idea, single bedrooms are renting for $900/ MO near the University and I can probably get my mortgage down to around that with 20% down.

The problem is even though the numbers make sense for my use I still feel like stuff is overvalued right now, so I'm being patient and will continue saving.

There's always deals out there, so I'm constantly searching Zillow and Redfin hoping something will pop up, but so far nothing fits the bill. I also have a realtor friend who has been sending me stuff off the MLS daily, but so far nothing in the right location.

I have a decent amount saved from working throughout school, so just trying to be smart with it and hopefully it will pay off in the long term.

Cost is the main concern. I looked at some duplexes and quadruplexes and they are $1.5M - 2.0M. Let’s say a duplex around the $1.5M would require a monthly flow of $8K to even make sense because mortgage payment would be around $8K a month. Can rent one out for $3K or higher depending on area. That’s still a lot of money to shell out per month. In that case it doesn’t make sense. A quad, if it’s not much more and yields 2 additional units at $3K a month makes more sense.

Or a single family home around $1-1.2M with roommates. Assuming 4 bedrooms, 2-3 baths, each pays $1500 for a bedroom or $1800 for a master bedroom would yield $4,800 a month. Mortgage payment should be $6K or so which means you’ll be putting in $1,200 a month for a master bedroom. That makes much more sense. Of course a Duplex, quad, or sfh that’s generating positive cf is more desirable. That comes down to price and down payment.

[1margarette]

I've seen a lot of articles on the internet and seems like real estate business are not that affected. Home prices remain the same.

[Jordan's World]

Originally Posted by BMW F22

Cost is the main concern. I looked at some duplexes and quadruplexes and they are $1.5M - 2.0M. Let's say a duplex around the $1.5M would require a monthly flow of $8K to even make sense because mortgage payment would be around $8K a month. Can rent one out for $3K or higher depending on area. That's still a lot of money to shell out per month. In that case it doesn't make sense. A quad, if it's not much more and yields 2 additional units at $3K a month makes more sense.

Or a single family home around $1-1.2M with roommates. Assuming 4 bedrooms, 2-3 baths, each pays $1500 for a bedroom or $1800 for a master bedroom would yield $4,800 a month. Mortgage payment should be $6K or so which means you'll be putting in $1,200 a month for a master bedroom. That makes much more sense. Of course a Duplex, quad, or sfh that's generating positive cf is more desirable. That comes down to price and down payment.

I was on my phone earlier and didn't see your location. Yea, we're clearly on different levels here, lol.

You could buy about 6 houses for $1.5M in my area, so I see your point.

Here is an example of what I'm looking for. I'd imagine a comparable house in your area would fetch about 4x this?


https://www.redfin.com/FL/Oviedo/100...m_content=link

[BMW F22]

Originally Posted by Jordan's World

I was on my phone earlier and didn't see your location. Yea, we're clearly on different levels here, lol.

You could buy about 6 houses for $1.5M in my area, so I see your point.

Here is an example of what I'm looking for. I'd imagine a comparable house in your area would fetch about 4x this?


https://www.redfin.com/FL/Oviedo/100...m_content=link

You’re spot on. Here’s a comparable home in a good area.

https://www.redfin.com/CA/Milpitas/1025-Rankin-Dr-95035/home/561723?utm_source=ios_share&utm_medium=share&utm_c ampaign=copy_link&utm_nooverride=1&utm_content=lin k

Note that I said good, not the top. Those ones are closer to $2M in places like Santa Clara which are typically older homes that need updating. It’s scary here.

[Jordan's World]

Originally Posted by BMW F22

You're spot on. Here's a comparable home in a good area.

https://www.redfin.com/CA/Milpitas/1...m_content=link

Note that I said good, not the top. Those ones are closer to $2M in places like Santa Clara which are typically older homes that need updating. It's scary here.

That's wild! Have you looked into any auctions or foreclosures? I'd imagine in that competitive of a housing market that would be the only way to score a deal, right from the source.

[BMW F22]

Originally Posted by Jordan's World

That's wild! Have you looked into any auctions or foreclosures? I'd imagine in that competitive of a housing market that would be the only way to score a deal, right from the source.

Foreclosures yes. Not a huge help. Auction you need cash I believe.

[eluded]

Consumer confidence is stronger than it should plus record low rates allow housing here where I am to carry on. Once the fee money stops and reality sets in this fall who knows

[ASAP]

There are things happening right now that still make 0 sense... you cant have an incredibly strong housing market when job losses are at record highs, consumer confidence is so so and the virus sees no sign of letting up.

The govt is virtually throwing everything at this right now to keep things artificially stimulated... you cannot have a 10 year bullrun with whats happening right now. Nothing is making sense.

I predict that within 3-4 months something bad will happen economically... by that time the election will have already also happened so less incentive to do anything for anyone.