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3 replies
  1. Common Sense NOT too common
    Common Sense NOT too common says:

    I live in Dallas. Maybe I am just a cheap guy but $300,000 just sounds high for a house. I guess other places have seen such prices for years. I just do not see the huge rise in wages to match the double of housing prices over the last decade or triple over the last 20 years.
    I see I house I bought 20 year ago around $76k and sold about 10 years later for $95k is now worth almost $200k.
    Hum
    I see that with a down payment you would have a manageable payment of $1300 but that is still at about double it was 20 years ago. I do not see that wages have increased that much. I am in IT and made about six figures then and can make about same now. One note is the payment is lower now because of low rates. As rates rise the houses become less affordable.
    Hum
    I guess people are just spending more for housing now. With 78% of people living paycheck to paycheck when a salary gets interrupted it gets real really fast especially if couples a stupid enough to be leasing two cars.
    Good for me
    As the prices go up I can rent my 12 mobiles about 45 minute away for more. I rent them for $600 for a single and $800 for double and they are substandard with painted plywood floors and window unit AC. Large suburb cities of Dallas are within 25 miles away but most people I rent to struggle at lower paying jobs. Apartments are expensive for a 2-3 bedroom place I provide. They are building a new billion dollar project with water plant in Leonard for 13 cities and first new lake in last 50 years. There is a 78 inch distribution pipeline being built now. Prices are headed up.
    What next
    I have enough room for at least 12 more I bet and maybe more so it makes sense to add more. Twelve more would gross $6000 a month but might cost $140,000 cash for all the improvements. I don't have that cash but can withdrawal from 401k without penalty in 3 years. Knowing this I might pull some equity from our house to make it happen. I guess we shall see. That would push me from $15k a month to $21k a month. It appears to be solid demand and the payback is less than 3 years.

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  2. Hollysbuddy
    Hollysbuddy says:

    I remember hearing you say that your tenantsAre people who are living paycheck to paycheck, will never own a home, and they’re happy that they can at least live in a house and can rent it. How does that affect your analysis? Well the house is that these folks rent will they go up 7% or more? Or will these tenets end up being owners?

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  3. Hollysbuddy
    Hollysbuddy says:

    How your analysis affect the Fresno market, particularly your segment of the market? I heard you say one time that your customers, your tenants, our folks that live from paycheck to paycheck. They will never own a home. And they are just grateful to be able to have a home that they can rent. Is this segment of the market are these houses going up 7%?

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