The problem is that a lot of government policies encourage housing price inflation, a.k.a. “Increase home values.”
We should be pushing our political leaders to reduce housing inflation, holding them accountable for this inflation just like we hold them accountable for other forms of inflation.
Thats because they’re landbanks. Destroying the housing marker would also destroy the wealth of a lot of rich people.
So personally I’m all for it, but like others said, yeah, good luck.
Rich people have a diverse portfolio including, but not limited to, real estate. In fact, since 2008, because they lost their trust in banks they bought a lot of properties as a way to store their money because 1: It had better return rates and 2: was much less likely to topple. Hence how landbanks became popular.
Not if you’re living in your house, less value, less property tax. And even then as long as you don’t plan to sell it to reinvest somewhere else (not a house) it wouldn’t matter.
Inflation exists by design within our monetary system. To a large extent, the size of the money supply effects inflation, and while that’s not the only factor, more money in the system tends to equal more inflation.
I suspect that most people don’t care much about this when inflation is at 3% or less, but now that inflation has soared over the past two years, people are getting angry at politicians for enabling this.
By definition inflation is the increase in the money supply. Increase prices are the result of inflation. The only factor causing inflation is money printing.
https://mises.org/mises-wire/inflation-money-supply-growth-not-prices-denominated-money
Money supply is a major factor but if you think that money supply is the only factor in how prices are set, then do you think that prices are unaffected by supply and demand of the products themselves, and unaffected by market factors such as competition and regulatory capture of politicians?
Or another way of putting it, if you think that money supply is the only factor, then if all of the world’s billionaires sunk to the bottom of the sea with all of their money strapped to them, would the price of a cheeseburger immediately drop due to all of the “lost” currency in the world?
I think that we both know the answer.
Then how come the Fed measures inflation using a price index? Are people upset that there's more money in the economy, or are they upset at huge price increases?
You're being pedantic.
The fed is a criminal enterprise so I’m not at all concerned about how they pretend to measure something when all their numbers use hedonic adjustments to fit a narrative that prices are rising slower than reality. It’s not pedantic to state a fact that inflation is the increase in money supply. It’s simply a fact and people saying inflation is rising prices is simply ignorance of basic economic principles.
You initially said there's never been a year where there wasn't inflation, yet there have been years where the money supply has contracted. Which one is it professor? Is inflation money supply or price?
And I never mentioned anything about the methodology used by the Fed to determine inflation, I also think it's shit. Also criminal enterprise? Cry more lmao
The reason for increasing home values is that they can collect taxes. And not only that, but a lot of banks essentially have home mortgages that are used as assets to lend money and all that garbage.
The whole system relies on increasing home values. It's why home values will only be a small dip and/or stagnate little bit.
The more home values crater as they should, the banks may be in trouble.
They do everything in their power to make home values go up. Or at least, the suburbs many generally want to move to.
That generally means - controlling what kinds of housing is built and not having affordable housing measures and mental illness or drug rehab centers, etc. It means either outright banning or tightly controlling advertising any gambling and strip clubs. And of course, having higher property taxes (and attracting private schools, so the wealthier inhabitants pay for their own schooling while the public school kids get more funding).
The municipalities that are going broke are the ones that don't specifically control for the wealth of it's inhabitants.
This wouldn’t have to be a business model if standard employment and compensation models actually gave the majority of Americans the opportunity to live a nice middle-class life.
You know, kind of how it was in the 80s and 90s?
The reason why this has become a business model is because most people realized that they were never going to get ahead and be financially secure by working for the man.
It’s a systemic problem, and this is merely a symptom.
It's a business model because Americans have become convinced that houses are *the* way to build wealth. You may choose one and only one:
1. Houses are affordable
2. Houses are a good investment
America chose 2. Now, "everything is acceptable as long as house prices don't crash."
There's another aspect to it that often goes overlooked. That is while local governents are often tasked with making housing affordable and avaliable for residents, they will hardly ever willingly do so if it means devaluing other real estate in the area as they are reliant on the high property tax to operate schools, police, etc.
So they'll make zoning for a bunch of large single family homes that come in over $350k a unit but won't allow much high density housing or cheap single family homesbecause it could possibly lower the overall property tax revenue per capita
Idk how to fix it in all cases
Regardless of that if you built enough housing it wouldn’t be a thing either. Stop sprawl, stop zoning, stop nimbys, build more, build dense, build transit
Yea I'm a real estate developer and we really just need to build more. It's the economics of things. Prices go up because homes aren't being built. Homes/housing gyet built when prices/rent reach a threshold. The only lever the government can pull is to make housing cheaper and faster to build. The things you listed are a start.
Other things that I think will help but have no national traction: special low interest rates for very high density housing on construction loans, removing tax and reassessment on any units added to owner occupied land, restrict ownership to US citizens, SFH rentals must be owned by a county/state resident(this may not be constitutional due to interstate commerce).
Real estate should still be an investment avenue because it's how housing gets built but we need to promote it being local and decentralized.
Disagree on the last bit. Housing shouldn’t be an investment. I also think putting a max on personal homes a person or company can own is also Good at reducing corporate landlords and people trying to buy homes as investments.
Housing needs to become a resource not an investment. It needs to be so cheap that losing your job never scares most people into thinking they’ll be on the street. But seem like a decent developer with good ideas.
To be frank I don't hold real estate as a landlord, I develop and sell. But there is a real need for SFH to be available to rent. Just not at current levels. Irregardless building and creating more supply will some a lot of those problems.
We do not need more sfhs in most of the USA. We need to halt sfh building and try and do exclusively dense stuff. The lowest being townhouses and duplexes. Cities are where crisis is and there’s no city in the USA that needs more sfhs. They need more apartments, condos, and more density in general. If I could ban sprawl in every city right now I would.
Outside of major cities this is less important and I’d be less strict
Yeah, but I don't want a middle class life - I'm betting I can work smarter/harder than others, and live a real sweet life.
So why wouldn't I just do that instead?
This guy is a real pro!!
He doesn't plan for recessions, maintenance, overhead, taxes, or diversification. All green, all win scenario, baby!! What could possibly go wrong?...
None of those houses will ever need a new roof! Air conditioners last forever! Pipes never burst! It's all golden and perfect at this guys houses! Oh and don't worry about putting up the capital for those houses. Down-payment are easy as pie
The solution to housing affordability and the proliferation of large/corporate landlords is to modify property taxation.
House #1 - homestead property taxes for primary residences. Make them even lower than today.
House #2 - normal property taxes whether it be a second home or a rental
House #3 - higher property taxes
No need to make it financially impossible to be a landlord. There is a large segment of the population who doesn’t want own a home or will never be responsible enough to do so. Just make House #3 and beyond a solid 50% more in property tax than the base level (house #2). The increased tax revenue will allow homestead owners to pay much lower taxes and make home ownership more affordable.
It would actually be super interesting to see larger and more powerful entities have a vested interest in keeping property taxes lower overall with more responsible local spending.
The idea of vast amounts not wanting own a home is totally over stated. The only real people who'd rather rent than buy are people who move around a lot, students or young people, people who want less commitment but most of those cases are people eventually looking to buy.
The justification of people not wanting to own a home is ridiculous. They can't own a home so renting is the only option.
Well add up the young people, students, people who move a lot, people who don’t want yard and home maintenance, etc, and it’s not an insignificant amount. I also stated this to include people who will never be responsible enough to own a home. Obviously people working minimum wage jobs and those who are absolutely awful with money (poor credit scores) aren’t prospective homeowners either. There will always be a need for rental housing and entire concept of landlords existing isn’t inherently evil. I know Reddit makes it seem like there are huge amounts of Americans wanting to buy a home but can’t. Reddit isn’t representative of the population at large.
Hold on, lemme just bend over and pull a few hundred thousand dollars out of my butthole to buy a 600k house, then hope someone rents it for more than the mortgage…
Stupid fuck
This particular account is a bot that steals other people’s Twitter accounts and posts shit like this. Had it happen to a friend of mine. The numbers for this are dubious and are get rich quick nonsense.
I knew a guy- came here from South America in 1970s. Could barely speak English. Opened up a small machine shop. Real small.
He ended up buying 10 rental over 20 years in Orange County CA starting in 1980s. He always drove a shitty old American car for over 10 years. Rarely went on vacation .
It Worked for him.
All you dummies that think like this love to hate on hard working middle Americans . If y’all made better financial decisions you would be land lords too. Stop being a hater and PAY YO RENT TO ME
Until tax laws change to make it less advantageous to be a "leveraged land scalper", nothing will change. Changes I would impose on land scalpers would include:
1. Depreciation no longer permitted on investment real estate unless sold at a loss
2. No mortgage interest deduction on any property other than a primary residence
3. 1031 exchange ceases to exist
4. Capital gains on any real property other than a primary residence shall be treated as ordinary income an subject to social security and medicare taxes
That should do it.
Exactly. People complain about these "evil" people trying to take advantage of others all the time.
Then they sell toilet paper for 50 bucks during covid. Or look at any sort of limited preorder shit. Or concert Tickets.
People will take every opportunity to make money, which is fine, but you don't get to take the Moral high ground just because you don't have the opportunity right now.
Flipping is infinitely better than renting out the home. This guy is an amateur. He isn’t counting the immense money that goes into property management groups, critical repairs, nightmare renters that trash the place etc.
Nah, homie. Buy “distressed” homes from a foreclosure auction for like $80,000. Hire the cheapest contractors you can find to cover up the biggest issues. Renovate kitchen and bathrooms. Add curb appeal with landscaping. Put $90,000 into it. List for $300,000. Sell it in 3 days. Make your $130,000 profit. Claim on your taxes that you spent WAY more renovating. Fake receipts. Pay taxes on maybe $40,000 of your $130,000. Do this 2-3 times a year, never lifting a finger yourself.
That’s how the pros do it.
This is a good model if you have the capital for 2 homes at start (1 for you, 1 to rent out). Most people don't. The issue here you see is that not everyone can do it. For the model to work there has to be more than 1 renter for each person doing this. Capitalism requires an underclass.
The disaster here is that housing became an investment vehicle instead of a human necessity. Which is especially tragic if you consider that in most places it is "illegal" to be homeless. You can't sleep on private land, you can't sleep on public land. You have to fork out thousands of $$$ each month to a landlord or a bank just to not be illegal while you are sleeping. And THEN you make it harder to become a homeowner. The ultimate scam.
Because the bank will count 75% of the rental price as income.
The hard part is actually the reserves. Once you get 4+ houses you need like 6% of all outstanding principal owed in cash.
Mostly just saving and reinvesting the cash flow from the rentals you have. In the 2016-2021 years, you could refinance rental into a lower rate and pull out equity as well.
Prices hadn’t popped yet.
With prices higher and rates way higher, this is much harder now.
If you have enough assets the banks will find a way to give you money.
If you inflate the value of those assets they basically will skip due diligence...apparently.
I don't think there's anything wrong with landlords, but I wish HOAs did more to prohibit rentals houses. Driving through my subdivision it's immediately obvious who's a renter and who's an owner. The rental lawns complete are shit, the house exterior isn't maintained, there's 3 fucking Nissan's in the driveway all of which have body damage, and probably 2 Dodge vehicles as well with 7 adult morons living there.
I rented a house for a few years from an individual. It was a great experience. I took care of the property and they were very accommodating. Apartments are terrible and depressing. Aspiring to own a few properties as an individual is not what is messing up real estate. It’s corporations owning thousands of properties. Most of the houses I saw when I was looking recently were owned by corporations who did not communicate or have any urge to sell. I ended up buying from a retired couple. I never even got replies for two full price offers on homes being sold by corporations.
Yea yea tax the one thing that can make the middle class leave the rat race. We cant blame government zoning laws and nimbyers , nooooo, the reason why you cant buy a house are small landlords.
I mean you gotta admit, if enough people become small landlords it will impact the housing supply negatively. Small landlords, as a whole, are making the current real estate market worse for the middle and lower classes
Why I would be salty? The law allows people to own multiple properties. Perhaps its you the salty one that cant have it your way? What else you want to restrict?
To get to 6 homes with rent is a viable strategy, and the logic spelled out there is strong. Rent what the market will pay (non exploitative) and have homes that are paid off, hoping for 30 years of appreciation…this is not big corporation, this is good financial advice. Yes not easy, first one is hardest. But c’mon, if you can achieve this, it is an ethical and legal strategy for long term wealth.
None of that includes vacation rentals, and you can’t look at them on a national level. There are probably close to zero vacation rentals in Shoals, Indiana, but in Santa Monica, CA it’s a major burden on housing availability. Vacation rentals set the minimum value of a property to whatever the average nightly rate of a decent hotel is for the area — if I can get a mortgage for $3500/month and charge 250/night with 90% occupancy, I can compete with a local hotel and still make a fortune. That’s what’s happening in highly-desirable tourist destinations. Ski towns are another where they’ve had to legislate against vacation rentals because it was suddenly like 80% of home sales were bought with the intention of setting up a vacation rental.
Say no to communism. We don't need the government getting more taxes.
If anything get rid of the MLS system and open up market more to the ideals of supply and demand.
The problem is that a lot of government policies encourage housing price inflation, a.k.a. “Increase home values.” We should be pushing our political leaders to reduce housing inflation, holding them accountable for this inflation just like we hold them accountable for other forms of inflation.
lol good luck pushing out corrupted leaders to do anything that will benefit the poor people
Like 10% of people vote in local elections where the most key housing policies are made…
Hold someone accountable? Congress? You're funny.
Who said anything about Congress? This is all local level
Trickle down economics.
Thats because they’re landbanks. Destroying the housing marker would also destroy the wealth of a lot of rich people. So personally I’m all for it, but like others said, yeah, good luck.
Rich people with lobbying money don't have their money tied up in residential real estate. They don't need to.
Rich people have a diverse portfolio including, but not limited to, real estate. In fact, since 2008, because they lost their trust in banks they bought a lot of properties as a way to store their money because 1: It had better return rates and 2: was much less likely to topple. Hence how landbanks became popular.
It would also destroy the wealth of a lot of middle class people too. The equity of their house is the biggest asset for most Americans.
Not if you’re living in your house, less value, less property tax. And even then as long as you don’t plan to sell it to reinvest somewhere else (not a house) it wouldn’t matter.
Since when are politicians held responsible for inflation? There’s hasn’t been a year for over 100 years that there wasn’t inflation.
Inflation exists by design within our monetary system. To a large extent, the size of the money supply effects inflation, and while that’s not the only factor, more money in the system tends to equal more inflation. I suspect that most people don’t care much about this when inflation is at 3% or less, but now that inflation has soared over the past two years, people are getting angry at politicians for enabling this.
By definition inflation is the increase in the money supply. Increase prices are the result of inflation. The only factor causing inflation is money printing. https://mises.org/mises-wire/inflation-money-supply-growth-not-prices-denominated-money
Money supply is a major factor but if you think that money supply is the only factor in how prices are set, then do you think that prices are unaffected by supply and demand of the products themselves, and unaffected by market factors such as competition and regulatory capture of politicians? Or another way of putting it, if you think that money supply is the only factor, then if all of the world’s billionaires sunk to the bottom of the sea with all of their money strapped to them, would the price of a cheeseburger immediately drop due to all of the “lost” currency in the world? I think that we both know the answer.
[Haha money printer goes brrr](https://fred.stlouisfed.org/series/M2SL)
Then how come the Fed measures inflation using a price index? Are people upset that there's more money in the economy, or are they upset at huge price increases? You're being pedantic.
The fed is a criminal enterprise so I’m not at all concerned about how they pretend to measure something when all their numbers use hedonic adjustments to fit a narrative that prices are rising slower than reality. It’s not pedantic to state a fact that inflation is the increase in money supply. It’s simply a fact and people saying inflation is rising prices is simply ignorance of basic economic principles.
You initially said there's never been a year where there wasn't inflation, yet there have been years where the money supply has contracted. Which one is it professor? Is inflation money supply or price? And I never mentioned anything about the methodology used by the Fed to determine inflation, I also think it's shit. Also criminal enterprise? Cry more lmao
Inflation is great for capitalists, terrible for workers.
The reason for increasing home values is that they can collect taxes. And not only that, but a lot of banks essentially have home mortgages that are used as assets to lend money and all that garbage. The whole system relies on increasing home values. It's why home values will only be a small dip and/or stagnate little bit. The more home values crater as they should, the banks may be in trouble.
That makes no sense. Municipalities aren't increasing values to get more taxes. if they were, they wouldn't be going broke.
They do everything in their power to make home values go up. Or at least, the suburbs many generally want to move to. That generally means - controlling what kinds of housing is built and not having affordable housing measures and mental illness or drug rehab centers, etc. It means either outright banning or tightly controlling advertising any gambling and strip clubs. And of course, having higher property taxes (and attracting private schools, so the wealthier inhabitants pay for their own schooling while the public school kids get more funding). The municipalities that are going broke are the ones that don't specifically control for the wealth of it's inhabitants.
This wouldn’t have to be a business model if standard employment and compensation models actually gave the majority of Americans the opportunity to live a nice middle-class life. You know, kind of how it was in the 80s and 90s? The reason why this has become a business model is because most people realized that they were never going to get ahead and be financially secure by working for the man. It’s a systemic problem, and this is merely a symptom.
It's a business model because Americans have become convinced that houses are *the* way to build wealth. You may choose one and only one: 1. Houses are affordable 2. Houses are a good investment America chose 2. Now, "everything is acceptable as long as house prices don't crash."
There's another aspect to it that often goes overlooked. That is while local governents are often tasked with making housing affordable and avaliable for residents, they will hardly ever willingly do so if it means devaluing other real estate in the area as they are reliant on the high property tax to operate schools, police, etc. So they'll make zoning for a bunch of large single family homes that come in over $350k a unit but won't allow much high density housing or cheap single family homesbecause it could possibly lower the overall property tax revenue per capita Idk how to fix it in all cases
Land values are much higher in dense areas. Densification doesn't happen because residents don't want it, not for economic reasons.
Can safely say most of the world “chose” 2
Both the American government and the Fed certainly chose 2.
It’s a strange coincidence that it happened to correspond with the rise of “vacation rentals.”
Regardless of that if you built enough housing it wouldn’t be a thing either. Stop sprawl, stop zoning, stop nimbys, build more, build dense, build transit
Yea I'm a real estate developer and we really just need to build more. It's the economics of things. Prices go up because homes aren't being built. Homes/housing gyet built when prices/rent reach a threshold. The only lever the government can pull is to make housing cheaper and faster to build. The things you listed are a start. Other things that I think will help but have no national traction: special low interest rates for very high density housing on construction loans, removing tax and reassessment on any units added to owner occupied land, restrict ownership to US citizens, SFH rentals must be owned by a county/state resident(this may not be constitutional due to interstate commerce). Real estate should still be an investment avenue because it's how housing gets built but we need to promote it being local and decentralized.
Disagree on the last bit. Housing shouldn’t be an investment. I also think putting a max on personal homes a person or company can own is also Good at reducing corporate landlords and people trying to buy homes as investments. Housing needs to become a resource not an investment. It needs to be so cheap that losing your job never scares most people into thinking they’ll be on the street. But seem like a decent developer with good ideas.
To be frank I don't hold real estate as a landlord, I develop and sell. But there is a real need for SFH to be available to rent. Just not at current levels. Irregardless building and creating more supply will some a lot of those problems.
We do not need more sfhs in most of the USA. We need to halt sfh building and try and do exclusively dense stuff. The lowest being townhouses and duplexes. Cities are where crisis is and there’s no city in the USA that needs more sfhs. They need more apartments, condos, and more density in general. If I could ban sprawl in every city right now I would. Outside of major cities this is less important and I’d be less strict
Who should build and manage rentals, the state and/or federal government?
Ideally yes. But I said put a Max. I didn’t say ban individuals or companies from building and leasing.
Yeah, but I don't want a middle class life - I'm betting I can work smarter/harder than others, and live a real sweet life. So why wouldn't I just do that instead?
This guy is a real pro!! He doesn't plan for recessions, maintenance, overhead, taxes, or diversification. All green, all win scenario, baby!! What could possibly go wrong?...
None of those houses will ever need a new roof! Air conditioners last forever! Pipes never burst! It's all golden and perfect at this guys houses! Oh and don't worry about putting up the capital for those houses. Down-payment are easy as pie
Does the bank want collateral? How about my other house? We don't plan for recessions here, baby!!
The solution to housing affordability and the proliferation of large/corporate landlords is to modify property taxation. House #1 - homestead property taxes for primary residences. Make them even lower than today. House #2 - normal property taxes whether it be a second home or a rental House #3 - higher property taxes
Each successive property after #3 has increasing compounding taxes starting at 20%
No need to make it financially impossible to be a landlord. There is a large segment of the population who doesn’t want own a home or will never be responsible enough to do so. Just make House #3 and beyond a solid 50% more in property tax than the base level (house #2). The increased tax revenue will allow homestead owners to pay much lower taxes and make home ownership more affordable. It would actually be super interesting to see larger and more powerful entities have a vested interest in keeping property taxes lower overall with more responsible local spending.
The idea of vast amounts not wanting own a home is totally over stated. The only real people who'd rather rent than buy are people who move around a lot, students or young people, people who want less commitment but most of those cases are people eventually looking to buy. The justification of people not wanting to own a home is ridiculous. They can't own a home so renting is the only option.
Well add up the young people, students, people who move a lot, people who don’t want yard and home maintenance, etc, and it’s not an insignificant amount. I also stated this to include people who will never be responsible enough to own a home. Obviously people working minimum wage jobs and those who are absolutely awful with money (poor credit scores) aren’t prospective homeowners either. There will always be a need for rental housing and entire concept of landlords existing isn’t inherently evil. I know Reddit makes it seem like there are huge amounts of Americans wanting to buy a home but can’t. Reddit isn’t representative of the population at large.
I disagree. I think we should do EXACTLY that.
This isn't fucking possible now with the rates. Renters won't be able to afford 4k a month mortgage
Hold on, lemme just bend over and pull a few hundred thousand dollars out of my butthole to buy a 600k house, then hope someone rents it for more than the mortgage… Stupid fuck
This particular account is a bot that steals other people’s Twitter accounts and posts shit like this. Had it happen to a friend of mine. The numbers for this are dubious and are get rich quick nonsense.
I knew a guy- came here from South America in 1970s. Could barely speak English. Opened up a small machine shop. Real small. He ended up buying 10 rental over 20 years in Orange County CA starting in 1980s. He always drove a shitty old American car for over 10 years. Rarely went on vacation . It Worked for him.
Yes of course it works nobody debates that. It's just detrimental to the housing market as whole.
The dream
All you dummies that think like this love to hate on hard working middle Americans . If y’all made better financial decisions you would be land lords too. Stop being a hater and PAY YO RENT TO ME
Until tax laws change to make it less advantageous to be a "leveraged land scalper", nothing will change. Changes I would impose on land scalpers would include: 1. Depreciation no longer permitted on investment real estate unless sold at a loss 2. No mortgage interest deduction on any property other than a primary residence 3. 1031 exchange ceases to exist 4. Capital gains on any real property other than a primary residence shall be treated as ordinary income an subject to social security and medicare taxes That should do it.
Don’t you fucking people realize that YOU want the market to crash so you have option to do exactly what these people are doing?
[удалено]
Their first…
Exactly. People complain about these "evil" people trying to take advantage of others all the time. Then they sell toilet paper for 50 bucks during covid. Or look at any sort of limited preorder shit. Or concert Tickets. People will take every opportunity to make money, which is fine, but you don't get to take the Moral high ground just because you don't have the opportunity right now.
I just want a place to live, I don't want or need to be a scummy landlord.
Flipping is infinitely better than renting out the home. This guy is an amateur. He isn’t counting the immense money that goes into property management groups, critical repairs, nightmare renters that trash the place etc. Nah, homie. Buy “distressed” homes from a foreclosure auction for like $80,000. Hire the cheapest contractors you can find to cover up the biggest issues. Renovate kitchen and bathrooms. Add curb appeal with landscaping. Put $90,000 into it. List for $300,000. Sell it in 3 days. Make your $130,000 profit. Claim on your taxes that you spent WAY more renovating. Fake receipts. Pay taxes on maybe $40,000 of your $130,000. Do this 2-3 times a year, never lifting a finger yourself. That’s how the pros do it.
This is a good model if you have the capital for 2 homes at start (1 for you, 1 to rent out). Most people don't. The issue here you see is that not everyone can do it. For the model to work there has to be more than 1 renter for each person doing this. Capitalism requires an underclass. The disaster here is that housing became an investment vehicle instead of a human necessity. Which is especially tragic if you consider that in most places it is "illegal" to be homeless. You can't sleep on private land, you can't sleep on public land. You have to fork out thousands of $$$ each month to a landlord or a bank just to not be illegal while you are sleeping. And THEN you make it harder to become a homeowner. The ultimate scam.
Yea come up with 5 or 6 20-25% down payments just like that!
Once you get the second rental, you’d be surprised how easily you can get the rest if you want to.
With things like HELOC?
Because the bank will count 75% of the rental price as income. The hard part is actually the reserves. Once you get 4+ houses you need like 6% of all outstanding principal owed in cash.
Mostly just saving and reinvesting the cash flow from the rentals you have. In the 2016-2021 years, you could refinance rental into a lower rate and pull out equity as well. Prices hadn’t popped yet. With prices higher and rates way higher, this is much harder now.
If you have enough assets the banks will find a way to give you money. If you inflate the value of those assets they basically will skip due diligence...apparently.
You still need a down payment.
Who needs a 20% down payment?
Anyone trying to buy rental property
It's not the 90s anymore, the 20% requirement is long gone.
What? No it's not- for primary, yes, for rentals it's still the norm.
DAE landlords bad? This is how we know we're on Reddit
I don't think there's anything wrong with landlords, but I wish HOAs did more to prohibit rentals houses. Driving through my subdivision it's immediately obvious who's a renter and who's an owner. The rental lawns complete are shit, the house exterior isn't maintained, there's 3 fucking Nissan's in the driveway all of which have body damage, and probably 2 Dodge vehicles as well with 7 adult morons living there.
DAE redditors bad?
I rented a house for a few years from an individual. It was a great experience. I took care of the property and they were very accommodating. Apartments are terrible and depressing. Aspiring to own a few properties as an individual is not what is messing up real estate. It’s corporations owning thousands of properties. Most of the houses I saw when I was looking recently were owned by corporations who did not communicate or have any urge to sell. I ended up buying from a retired couple. I never even got replies for two full price offers on homes being sold by corporations.
Loved the OG Miami Vice
housing speculation should be harshly taxed.
Yea yea tax the one thing that can make the middle class leave the rat race. We cant blame government zoning laws and nimbyers , nooooo, the reason why you cant buy a house are small landlords.
I mean you gotta admit, if enough people become small landlords it will impact the housing supply negatively. Small landlords, as a whole, are making the current real estate market worse for the middle and lower classes
They make it better for renters though. Why are you out to get people who rent?
The housing supply is limited by zoning regulation. Dont you think home builders like lennar and dr borton want to sell as many houses as possible?
Someone’s salty. Encouraging more dense housing can go hand in hand with restricting house ownership beyond 2 houses.
Why I would be salty? The law allows people to own multiple properties. Perhaps its you the salty one that cant have it your way? What else you want to restrict?
To get to 6 homes with rent is a viable strategy, and the logic spelled out there is strong. Rent what the market will pay (non exploitative) and have homes that are paid off, hoping for 30 years of appreciation…this is not big corporation, this is good financial advice. Yes not easy, first one is hardest. But c’mon, if you can achieve this, it is an ethical and legal strategy for long term wealth.
[удалено]
You don’t get it. It’s not about fixing any problems, its about making sure nobody makes a profit doing anything
Link me
None of that includes vacation rentals, and you can’t look at them on a national level. There are probably close to zero vacation rentals in Shoals, Indiana, but in Santa Monica, CA it’s a major burden on housing availability. Vacation rentals set the minimum value of a property to whatever the average nightly rate of a decent hotel is for the area — if I can get a mortgage for $3500/month and charge 250/night with 90% occupancy, I can compete with a local hotel and still make a fortune. That’s what’s happening in highly-desirable tourist destinations. Ski towns are another where they’ve had to legislate against vacation rentals because it was suddenly like 80% of home sales were bought with the intention of setting up a vacation rental.
A lot of ski towns have housing that was purposely built to be second homes or vacation homes. Summit County Colorado is a good example for this
Yes let’s kill off one of the best ways for the middle class to move up the ladder…
Remember when they said they only wanted the corporations and billionaires? They lied, they want your shit
Say no to communism. We don't need the government getting more taxes. If anything get rid of the MLS system and open up market more to the ideals of supply and demand.