Crazy Seller Story | They are Giving Up 

Exactly!

Very possible. I think this is why so many are moving to Tn. Smaller gov.

No kidding! What are you seeing?

@@EthanFlynn you're a smart guy u can figure out

Pretty much but that’s the point. There’s so much equity we could see massive price drops because owners just want to move on.

Hahahahha. Try $700k over. WITH the “big” price cut.

Great point. Also, cash buyers still have opportunity cost.

Great insight ❤

@@EthanFlynn Moving costs and commissions can be made up for in several years if moving to areas with a relatively lower cost of living.

For this particular situation it’s two rents. An ADU and a house. So combined $10K, but there is shockingly a lot more $10K rents than I would have imagined.

After 2008 and the Frank Dodd bill, the Federal reserve gave investment banks a blank check to buy up "distressed" properties to prop up the housing market. With near 0% interest rates they basically turned the housing market into a stock or currency market, buying and selling "investment" properties amongst themselves. Aka all those cash buyers you hear about. Like the stock market they can push prices up and down based on the funny money and trading things between themselves. So its become totally divorced from reality. Now the money is no longer cheap so all that trading activity has stopped. Houses will crash down to what the market aka people who want to actually live in the house are willing to pay. 1.3 million for that piece of crap in the video is insane. That would have been 300k-500k 10 years ago. With remote work you can live in basically a palace in Asia for less than 300k purchase price with two full time servants. Why would I enslave myself to a 10k a month mortgage in Nashville??? Life is better elsewhere. More opportunities elsewhere.

Unless our currency is the bubble.

Great question! To clarify that is essentially what both doors would rent for. But this is an attached apartment with separate entrance. So the $2,500/mo is fully furnished with utilities included. The main would rent for $6-8K but it would be weird to rent them both because of the proximity to the attached apartment. Not sure there’s a market to rent them both. So the point is that you could rent the apartment and get a $8K house for much less. You could flip it but you would need to renovate $100-200K for bathroom/kitchen. That pushes up the price significantly and then the return becomes less attractive with the uncertainty of carrying costs and timing. You would likely have to sell next spring. That gets expensive to hold. So if you are looking to buy in the neighborhood it’s a homerun IMO but just can’t get there with investment.

I don’t know. After $8T in printing you think we are going back to 2019? Inflation is too high and will be too high IMO

Problem is rates were 5% in 2019. And real incomes have declined since 2019. So in reality, it’s not 2019 prices + 10% it’s 2019 prices - 10%.

Thank you Carlos! Absolutely. Good tenants are key. Treat them well and keep them.

Can you share more? What area?

You can buy now for $1,500/mo.

@@EthanFlynnyes, a tiny house

No. I wish I would have mined it when I first heard about it 10+ years ago. But no I don’t get it.

@@EthanFlynn Zero yielding “assets” are a 0% interest rate phenomenon. Makes no sense now but not all bubbles have popped yet.

@@EthanFlynn you should buy some. Just saying. Still early.

@@EthanFlynn there is a channel called Invest Answers. James does an amazing job explaining math, money & freedom. 📈

Inflation is 40%. Can you explain? Also, I personally don’t think there’s a crash coming but hold room for a possibility. Did you get that from the video?

​​​​​@@EthanFlynnYour video is great. I'm just making a general point. Most real estate channels are talking about "waiting for the dip". Warren Buffett is "waiting for the dip". It is very RARE when everyone is "doing ABC" and then ABC transpires. If everyone is "waiting for the dip" and we are heading into an election, and we have Japan selling treasuries, I simply can't comprehend how prices can go "down" relative to a dollar that HAS to be inflated. Most people did not expect 2008. Everyone and their dog is "wating for the crash" in 2024. I think they'll be waiting forever. Prices are heading down. I know because I've been shopping for a house for 6 months. I've been on Zillow for hours every day. Yes, they are heading down right now, yes, but only because everyone is WAITING. The cash is there. The treasuries will be sold, and the Fed will print. Nothing stops this train

Not seeing price drops downtown? Isn’t that mostly condos down there?

@@EthanFlynn Yes and it seems that area is still quite active. 37206 (East Nashville) anywhere near the Oracle campus and the new Stadium is very popular seems to be getting more expensive