A Golden Opportunity To Buy Real Estate Is Upon Us

    9 Mar    Blog
    Mar 9

    A Golden Opportunity To Buy Real Estate Is Upon Us

    Back in 2017, I had a very difficult decision to make. My rowdy tenants gave notice and I had to decide whether to sell my rental property or try and find new tenants.

    The house had been rented between 2014 – 2017 for $8,200 – $8,800 a month. But when I went to find new tenants at a similar rent in 2017, none were to be found. Instead, I got a couple of offers for only $7,500 a month after 45 days of looking.

    Because my tenant situation gave me stress and my son was just born, I really felt that 2017 was a good time to sell. Further, I was running up against the $500,000 tax-free profit exclusion limit.

    Earlier, in 2012, I had tried to sell the house for $1.7 million and received zero offers. My agent at the time told me one couple was looking to lowball me at $1.5 million and I told them don’t bother. Fast forward five years, I was able to find my one and only offer for $2.75 million so I took it.

    After paying fees, taxes, and the $800,000 mortgage, I was left with about $1,800,000 in proceeds. Over the next 60 days, I invested $600,000 into dividend-paying stocks, $600,000 into CA municipal bonds, $550,000 into real estate crowdfunding, and left ~$50,000 in cash.

    So far, the reinvested proceeds have done well. But most of all, the reinvested proceeds have provided a greater amount of passive income with minimal work on my part. I’m extremely thankful I was able to free up time since mid-2017 to be a stay at home dad.

    I’m also thankful to the FS community for sharing their thoughts about whether or not to sell back in 2017. After over 1,000 votes, 75% of you said sell, which gave me added confidence to let my once beloved property go.

    In this post, I will argue that a golden opportunity to buy real estate is once again upon us. My spidey senses are telling me it’s time to buy at least one property before January 1, 2021.

    After I finish telling you why I’m getting bullish on real estate, I’d love for those of you who are bearish to blow my arguments to smithereens.

    Why It’s Time To Buy Property Again

    1) Prices have softened all across the country. It turns out, selling in 2017 looks to have been the recent median sales price peak according to the Federal Reserve Economic Data (FRED). See chart below.

    If we look what happened after the previous peak in late 2006, we saw the median sales price go from $255,000 down to $210,000 (-17%) over the course of 2.5 years. Some time in 2H2009, home prices bottomed.

    Home prices gradually ticked higher from late 2009 until 2012, before exploding ~55% higher from $220,000 to $340,000 in 2H2017.

    The median sales price has since fallen from $340,000 to roughly $310,000 in 4Q2019, a 9% decline.

    2) Mortgage rates have collapsed. Mortgage rates have declined by over 1% across various mortgage types since their highs in 2018. Although the average mortgage rate for a 30-year fixed is 3.49% and 3.25% for a 5/1 ARM according to Freddie Mac below, if you employ my mortgage rate strategies, you can do better.

    I refinanced to a no-cost, 7/1 ARM at 2.625%, which is going to save me over $1,000 a month in cash flow until 2027. With hundreds of thousands of homeowners wisely refinancing their mortgages in 2H2019, more money will be spent to help prop up the economy.


    1. Can you please send by e-mail me the code for this script or please inform me in detail regarding this script? Sioux Elden Philomena

    2. I am typically to blogging and i actually recognize your content. The article has actually peaks my interest. I am going to bookmark your web site and maintain checking for brand new information. Isa Krisha Parks

    3. hello!,I really like your writing so so much! share we keep in touch extra approximately your post on AOL? I require a specialist on this space to unravel my problem. Maybe that is you! Looking forward to look you. Marcelle Shayne Dow

    4. Grazie del commento Cinzia, sicuramente un incoraggiamento per proseguire a diffondere in termini la cultura della sicurezza informatica. Francyne Bealle Tony

    5. Wow! Thank you! I constantly wanted to write on my blog something like that. Can I implement a portion of your post to my blog? Reine Sloan Brendin

    6. First time using this site as a Lay minister I used the prayer of the faithful as a guide when preparing for service. Sometimes when time is limited. God bless, continue the great work God has started in each. Blessings from Trinidad and Tobago. Portia Menard Plato

    7. Fascinating blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple tweeks would really make my blog stand out. Please let me know where you got your theme. Appreciate it Kyla Jamesy Tisbee

    8. Hello There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and return to read more of your useful info. Thanks for the post. I?ll definitely comeback. Joanne Wells Novia

    9. Thanks , I have recently been looking for info about this subject for a while and yours is the greatest I have found out till now. However, what concerning the bottom line? Are you certain in regards to the supply? Terrye Arlen Edmondo

    10. As I web-site possessor I believe the content material here is rattling fantastic , appreciate it for your efforts. You should keep it up forever! Best of luck. Ella Anton Arathorn

    11. After looking into a handful of the blog posts on your web site, I really appreciate your technique of writing a blog. I saved as a favorite it to my bookmark website list and will be checking back soon. Please check out my web site as well and let me know what you think. Hildegarde Tito Whitcher

    12. After I originally left a comment I seem to have clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I recieve 4 emails with the same comment. There has to be an easy method you are able to remove me from that service? Many thanks. Meryl Erskine Marylinda

    13. If you are going for best contents like me, only go to see this web page everyday because it gives quality contents, thanks Mada Claudianus Eadith

    14. This was not a vacation, it was a business trip for Ada, his phone was not going thru a way of protecting himself incase they were arrested. Yho Samke you should have stayed in res a ngeke Cheryl Westley Grizel

    15. You made some nice points there. I looked on the internet for the subject matter and found most individuals will agree with your site. Anjanette Fred Wawro

    16. As I web-site possessor I believe the content matter here is rattling fantastic , appreciate it for your hard work. You should keep it up forever! Good Luck. Clarissa Dare Lieberman

    17. Very great post. I just stumbled upon your weblog and wanted to say
      that I have really loved browsing your weblog
      posts. After all I’ll be subscribing on your rss feed and I am hoping you
      write once more soon!

      Also visit my webpage marijuana gumies

    18. Hello there, just became aware of your blog through Google, and found that it is really informative.
      I am gonna watch out for brussels. I’ll appreciate if you continue this in future.
      Lots of people will be benefited from your writing.

      Here is my blog delta 8 THC

    19. Sweet blog! I found it while browsing on Yahoo News.
      Do you have any tips on how to get listed in Yahoo News?
      I’ve been trying for a while but I never seem to get there!
      Appreciate it

      Feel free to surf to my web page: delta 8 gummies

    20. Great website you have here but I was wondering if you knew of
      any discussion boards that cover the same topics talked about here?
      I’d really like to be a part of online community where I can get feedback from other experienced individuals
      that share the same interest. If you have any suggestions, please let me know.
      Bless you!

      my web page US Magazine

    21. Hello I am so happy I found your web site, I really found you
      by mistake, while I was researching on Askjeeve for something else, Anyhow I
      am here now and would just like to say thanks a lot for a marvelous post and a all round
      exciting blog (I also love the theme/design), I don’t have time to read it all
      at the minute but I have bookmarked it and
      also included your RSS feeds, so when I have time I will be back to read a great deal more, Please do keep up the fantastic jo.

      Here is my blog – buy weed

    22. Fantastic beat ! I would like to apprentice while you amend your site, how could i
      subscribe for a blog web site? The account helped me a acceptable deal.
      I had been tiny bit acquainted of this your broadcast provided
      bright clear concept

    23. Just want to say your article is as astounding. The
      clarity in your post is simply excellent and i could assume you’re an expert on this subject.
      Well with your permission let me to grab your feed to keep
      up to date with forthcoming post. Thanks a million and please keep up
      the enjoyable work.

      Look into my webpage :: cbd capsules for pain (https://www.heraldnet.com)

    Leave a Reply

    Your email address will not be published.

    × Support