[garysears]

I’m not an investor but I think the pros shy away from SFRs as rentals in general due to higher maintenance costs. MFRs have the advantage of centralized systems to maintain, driving the cost per unit down.

On the current market, I suspect the bottom has passed at the low end but I can’t be certain. Everyone should know by now the current bounce is 100% contingent on availability of cheap money and government intervention. The reason prices bottomed so hard was due partly to few available qualified borrowers for the terms required to get the money. This was combined by an initial willingness by banks to foreclose quickly and process REOs. All that was during and shortly after the “credit freeze” the markets suffered in 2008. Then government stepped in and changed everything…for now at least.

It is still a 2 tier market. Cash is king and properties that will not go FHA or are not conforming will probably be scooped by an all cash flipper who will rehab to meet the minimum requirements to get the governments loans, then flip to the minimal money down buyers.

I saw an example of this across the street in the neighborhood where I’m buying. An investor paid $175k in June 2009 and sold for $400k in December 2009. Until cash buying flipper margins go down, it seems there is room for more declines. Posters have commented here that at the auctions crazy all cash flippers are bidding up properties, putting the profitability of the deals in question. That is what tells me the bottom may have passed for this cycle. Real estate in San Diego is a magnet for hot money again.

Qualified 20% down buyers really don’t seem to exist at the low end. No one can say what will happen because fundamentals are out of play and the rules seem to change daily. It is depends on getting free or cheap money to borrowers. If any sort of old school lending standards come back, look out below!

[garysears]

The recovery is artificial in the sense private lenders cannot compete with the government’s willingness to lose money. There would be mortgages made if the government stopped backing the market, just not at terms buyers would like.

The question potential buyers need to ask is how long the intervention can go on. Fundamentals are obviously out the window. Much like the blowoff top in the bubble from say 2004-2006, when everyone said it couldn’t last, I have come to believe the government intervention will last longer than most here believe possible. I think government will go so far as to risk the currency over bailing out the banks. That means no letup in intervention schemes. Once the banks are adequately bailed, only then will government think of backing out of the market.

The big surprise to me is the fact that rates are about the same as they were when the Federal Reserve stopped buying MBS. That can’t be expected to last, but what do I know?

[garysears]

The recovery is artificial in the sense private lenders cannot compete with the government’s willingness to lose money. There would be mortgages made if the government stopped backing the market, just not at terms buyers would like.

The question potential buyers need to ask is how long the intervention can go on. Fundamentals are obviously out the window. Much like the blowoff top in the bubble from say 2004-2006, when everyone said it couldn’t last, I have come to believe the government intervention will last longer than most here believe possible. I think government will go so far as to risk the currency over bailing out the banks. That means no letup in intervention schemes. Once the banks are adequately bailed, only then will government think of backing out of the market.

The big surprise to me is the fact that rates are about the same as they were when the Federal Reserve stopped buying MBS. That can’t be expected to last, but what do I know?

[garysears]

The recovery is artificial in the sense private lenders cannot compete with the government’s willingness to lose money. There would be mortgages made if the government stopped backing the market, just not at terms buyers would like.

The question potential buyers need to ask is how long the intervention can go on. Fundamentals are obviously out the window. Much like the blowoff top in the bubble from say 2004-2006, when everyone said it couldn’t last, I have come to believe the government intervention will last longer than most here believe possible. I think government will go so far as to risk the currency over bailing out the banks. That means no letup in intervention schemes. Once the banks are adequately bailed, only then will government think of backing out of the market.

The big surprise to me is the fact that rates are about the same as they were when the Federal Reserve stopped buying MBS. That can’t be expected to last, but what do I know?

[garysears]

The recovery is artificial in the sense private lenders cannot compete with the government’s willingness to lose money. There would be mortgages made if the government stopped backing the market, just not at terms buyers would like.

The question potential buyers need to ask is how long the intervention can go on. Fundamentals are obviously out the window. Much like the blowoff top in the bubble from say 2004-2006, when everyone said it couldn’t last, I have come to believe the government intervention will last longer than most here believe possible. I think government will go so far as to risk the currency over bailing out the banks. That means no letup in intervention schemes. Once the banks are adequately bailed, only then will government think of backing out of the market.

The big surprise to me is the fact that rates are about the same as they were when the Federal Reserve stopped buying MBS. That can’t be expected to last, but what do I know?

[garysears]

The recovery is artificial in the sense private lenders cannot compete with the government’s willingness to lose money. There would be mortgages made if the government stopped backing the market, just not at terms buyers would like.

The question potential buyers need to ask is how long the intervention can go on. Fundamentals are obviously out the window. Much like the blowoff top in the bubble from say 2004-2006, when everyone said it couldn’t last, I have come to believe the government intervention will last longer than most here believe possible. I think government will go so far as to risk the currency over bailing out the banks. That means no letup in intervention schemes. Once the banks are adequately bailed, only then will government think of backing out of the market.

The big surprise to me is the fact that rates are about the same as they were when the Federal Reserve stopped buying MBS. That can’t be expected to last, but what do I know?

[garysears]

18K means a lot at the low end. That is 10% of the cheapest SFRs. More for low end condos, but I think the federal credit at least is limited to 10% of purchase price.

[garysears]

18K means a lot at the low end. That is 10% of the cheapest SFRs. More for low end condos, but I think the federal credit at least is limited to 10% of purchase price.

[garysears]

18K means a lot at the low end. That is 10% of the cheapest SFRs. More for low end condos, but I think the federal credit at least is limited to 10% of purchase price.

[garysears]

18K means a lot at the low end. That is 10% of the cheapest SFRs. More for low end condos, but I think the federal credit at least is limited to 10% of purchase price.

[garysears]

18K means a lot at the low end. That is 10% of the cheapest SFRs. More for low end condos, but I think the federal credit at least is limited to 10% of purchase price.

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

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