{"id":2965,"date":"2008-04-13T15:09:57","date_gmt":"2008-04-13T22:09:57","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2965"},"modified":"2008-04-13T15:09:57","modified_gmt":"2008-04-13T22:09:57","slug":"are-you-still-waiting-for-her-to-come-back","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2965\/are-you-still-waiting-for-her-to-come-back\/","title":{"rendered":"Are You Still Waiting For Her To Come Back?"},"content":{"rendered":"

So much of the country hasn’t experienced the 15-40% annual appreciation rates places like San Diego have experienced several times. Regardless of the down times, we’ve learned she always comes back smiling. The market? In the end, she would always love us. She always has. Though at times she could lash out, she always made up for it with lavish gifts of abundant appreciation. That may still be the case in regions like SoCal, but it’s my belief it won’t include the vast majority of residential income property.<\/p>\n

There are several reasons allowing investors to conclude this. I wrote about many of those reasons in over at my place, adding a video for fun<\/a>. <\/p>\n

First and foremost, developers paid attention in eighth grade math class. They can make $X building duplexes or fourplexes and the like OR $X+ building condos\/townhomes OR $X+++ building single family residences — and all on the same piece of dirt. Go figure, they chose to build where they found the most profit. This has been happening in places like San Diego since the ’80’s. <\/p>\n

The only residential income product built since then has been recently. It’s been concentrated on the coast and upper income locations with rents that are incredibly high. These newish projects are not competition, nor do they have any positive affect on the values, rents, or vacancy rates of 35 year old duplexes. Duh.<\/p>\n

An example is a new place offering 1 bedroom apartments for twice the rent of competition half a mile away. Twice as much. They also offer their tenants everything but a Friday night date — something I’m sure they’ll correct upon reading this. <\/p>\n

The point is that the market? She’s left you. And she ain’t coming back no matter how much you turn on the old charm. When investors have the choice of putting less than 35-50% down just to break even, they’ll do it. The party’s over. Capital flows to the best returns. Duh. So why do folks in places like uh, the west coast for instance, insist things will revert to the status quo they’ve relied upon for so Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

So much of the country hasn’t experienced the 15-40% annual appreciation rates places like San Diego have experienced several times. Regardless of the down times, we’ve learned she always comes back smiling. The market? In the end, she would always love us. She always has. Though at times she could lash out, she always made […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,5,28],"tags":[],"class_list":{"0":"post-2965","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-real-estate","8":"category-retirement","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":44,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/44\/how-to-profit-by-bad-examples\/","url_meta":{"origin":2965,"position":0},"title":"How to profit by bad examples…","author":"Odysseus","date":"January 15, 2006","format":false,"excerpt":"If you want some really bad real estate advice, look no further than The Arizona Republic. Somehow or another, reporter Judy Nichols found three people who suffer from the notion that renting is better than owning their own homes in high-appreciation neighborhoods. Only two actually pulled the trigger and sold\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2064,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2064\/sub-prime-mortgage-crisis-caused-by-unexpected-success\/","url_meta":{"origin":2965,"position":1},"title":"Sub Prime Mortgage Crisis Caused By Unexpected Success","author":"Brian Brady","date":"October 19, 2007","format":false,"excerpt":"Sub prime mortgage are defaulting at record proportions.\u00a0 Lenders are closing their doors and confidence is waning on Wall Street. Greed, corruption, and irresponsibility have all been cited as the reasons for this contraction and collapse. While these factors might be contributing reasons, they are all byproducts from the underlying\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16790,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16790\/three-reasons-why-new-york-and-san-francisco-arent-dead\/","url_meta":{"origin":2965,"position":2},"title":"Three reasons why New York and San Francisco aren’t dead","author":"Brian Brady","date":"August 30, 2020","format":false,"excerpt":"\"The reports of our deaths are greatly exaggerated\"-- New York City and San Francisco The Bloodhounds have been talking about San Francisco and Manhattan's death over on Facebook.\u00a0 The general consensus is that they have been ruined by Marxist mayors (they have) and become much too expensive for people to\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/Housing-Supply-1024x678.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/Housing-Supply-1024x678.jpg?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/Housing-Supply-1024x678.jpg?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/Housing-Supply-1024x678.jpg?resize=700%2C400 2x"},"classes":[]},{"id":10037,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10037\/capture-appreciation-and-cash-flow\/","url_meta":{"origin":2965,"position":3},"title":"Capture Appreciation and Cash Flow","author":"Cooksquared","date":"October 12, 2009","format":false,"excerpt":"The advantage of investing in today\u2019s market is the potential to capture appreciating assets that provide strong cash flow. These investments are the holy grail of real estate investing. In strong markets, these properties simply don\u2019t exist, but in down markets, a smart investor can pick out these diamonds among\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3452,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3452\/dan-kennedy-infusionsoft-tour-four-cities-in-four-days\/","url_meta":{"origin":2965,"position":4},"title":"Dan Kennedy InfusionSoft Tour: Four Cities in Four Days","author":"Brian Brady","date":"July 22, 2008","format":false,"excerpt":"If you're unfamiliar with Dan Kennedy, he's often referred to as \"The Millionaire Maker\".\u00a0 He cut his teeth as a direct marketing copywriting guru in the 80s, attracted a lot of readers in the 90s, and has built an army of students, this decade, through his Glazer-Kennedy Insider Circle.\u00a0 His\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2682,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2682\/words-never-fail-we-hear-them-we-read-them-they-enter-into-the-mind-and-become-part-of-us-for-as-long-as-we-shall-live-who-speaks-reason-to-his-fellow-men-bestows-it-upon-them-who-mouths-inanity\/","url_meta":{"origin":2965,"position":5},"title":"Words never fail. 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