Which Host City Has the BEST Housing Market?

Dave:Hey everybody. Welcome to On The Market. I’m your host, Dave Meyer. Right now we’re going to be speaking in regards to the massive information everybody’s fascinated about, which is in fact, the Tremendous Bowl. I don’t know, is everybody fascinated about it? Do you guys take into consideration this? Effectively, Kathy, you clearly do since you’re sporting some kind of soccer uniform in the present day. What jersey is that this?

Kathy:That is truly the Cardinals, and it’s Devon Kennard, who’s popping out with a BiggerPockets guide very quickly.

Dave:That makes numerous sense.

Kathy:And his first interview on actual property was on my present, The Actual Wealth Present, so I bought this.

Dave:Superior.

Kathy:I don’t assume he gave you one Dave when he was on this present although.

Dave:I don’t have one and I’m glad although as a result of I’d not look as cool as you do in your Devon Kennard skilled jersey proper now. In case you guys don’t know Devon, he’s an superior actual property investor, former NFL participant. He’s been on this present. He’s written a guide for BiggerPockets and apparently, good friend of Kathy.

Henry:I don’t observe soccer an excessive amount of. I like soccer, I perceive it, however I’ve beef with grown males in children’ uniforms. It’s simply bizarre to me. I’ve by no means been a jersey man. Simply me strolling round with some younger child’s final identify on my again simply at all times appeared like a bizarre factor. I simply can’t get with the jerseys. It’s bizarre for me. I don’t know.

Dave:Is that every one sports activities or simply soccer?

Henry:All sports activities. All sports activities. It’s like I’d get a jersey that you simply customise and put your individual identify on the again, however I don’t know.

Dave:You’re simply rooting for your self. You simply wish to root for Henry.

Henry:After which it’s similar to everyone’s working round speaking about, “We bought a sport. Who can we play tonight?” Sir, you don’t have a sport.

Kathy:When’s the final time you ran across the block?

Henry:You’re not on the group. They don’t even know you exist. You bought to choose your children up from daycare and you bought a chiropractor’s appointment. You don’t have a sport.

Dave:James, you bought to leap in right here as a result of I do know you disagree.

James:Oh, I’ve invested some severe cash into my jersey sport. The Tremendous Bowl is my favourite vacation, so it’s the primary vacation. Be certain that my calendar’s blocked out and I can be at all times watching, however sadly the Seahawks aren’t in there, however I’m closely invested in Seahawk swag.

Dave:Effectively, that’s excellent for you, James, as a result of in the present day we’re going to be speaking about completely different markets which have hosted the Tremendous Bowl. So we aren’t going to dive into the groups which can be within the sport. This present must be popping out I feel two or three days earlier than the Tremendous Bowl. We now have 49ers and the Chiefs matching up. However in the present day we’re going to speak about a few markets which have hosted them not too long ago and we’re going to judge each considered one of them about how good they’re for funding or what explicit methods may work in a kind of markets.So every of us goes to take one of many final 4 hosts of the Tremendous Bowl and we’re going to interrupt them down. So James, hopefully that is an acceptable celebration for you. Henry, you might simply sit there mad for the entire time, however you do need to take part as a result of we bought a sport in the present day Henry, you do need to play it. And earlier than we do it, we even have Tremendous Bowl trivia to speak about to see how nicely you do. And Henry, I’m going to make you go first.Do you guys know what yr the primary Tremendous Bowl was, Henry?

Henry:1941.

Dave:Kathy?

Kathy:I feel we must always toss this to James. I feel he’s going to know the reply, however it’s been some a long time.

Dave:That’s true. Very obscure however true. James?

James:I don’t know the precise yr, however I do know it was someplace within the ’60s as a result of there was two leagues and so they merged them again when there was two leagues. I feel Henry was shut when there was two, however when the NFL got here collectively, I feel ’60s, someplace in there.

Dave:All proper, James, you’re appropriate. It was 1967, so it was Chiefs versus Packers in 1967.

Kathy:Guys.

Dave:That was the primary Tremendous Bowl.

Kathy:I’m older than the Tremendous Bowl.

Dave:Effectively, you’ve been round for some a long time additionally, Kathy.

Kathy:Thanks. Sure.

Dave:That’s how previous you might be, some a long time. Might be 20.

Kathy:Thanks.

Dave:All proper, I’ll ask you another trivia query and spare you. Possibly I’ll simply ask James, see if he is aware of. Which two beginning quarterbacks received the Tremendous Bowl with two completely different groups?

Henry:Are they at the moment enjoying?

James:No, they’re not. That is straightforward although as a result of it’s pretty current.

Henry:Okay. Okay. Okay.

Kathy:That is straightforward. This appears straightforward. Yep. I even know this one.

Dave:Okay.

James:Two of the best. You bought Tom Brady-

Dave:And?

James:-And Peyton Manning, as a result of Peyton Manning received it with the Colts and the Broncos.

Dave:Bravo. Effectively accomplished James. That was a very good one.

James:Can we get Tom Brady on the On The Market podcast? I’d like to interview Tom Brady.

Dave:I don’t assume we’ve got that form of pull, man. Kaylin simply slacked us and stated that she’s going to work on it.

Kathy:Oh, he’s most likely listening proper now. Yeah.

Dave:Yeah, he positively listens. So we’ll get him on right here any day now.

James:There’s two man crushes I’ve, Tom Brady and Mark Wahlberg. These are the 2. Mark Wahlberg, if we might get him on too, that might be a terrific present.

Dave:Mark Walberg? Okay. Who knew? All proper, nicely we must always most likely transfer on from soccer, regardless that I’m excited in regards to the Tremendous Bowl. And what’s cool in regards to the Tremendous Bowl is we’re all going to be collectively for the Tremendous Bowl this yr. We’re going to be collectively in Denver at a Tremendous Bowl occasion, which can be very enjoyable. And if any of you by the way in which are within the Denver space the day after, so the twelfth, we’re internet hosting a BiggerPockets meetup in Denver. So for those who’re within the Colorado space, James, Henry, Kathy, myself and the opposite podcast hosts will all be there. So go verify that out.However we’ve talked sufficient about soccer, let’s get into actual property after this break.All proper, Kathy, you’re the finest dressed for this occasion in the present day by far.

Kathy:Thanks a lot.

Dave:For these of you who aren’t watching on YouTube, it’s like full shoulder pads. It’s a actually good outfit proper now.

Henry:Yeah, it’s a professional sport jersey. It’s not one you go and purchase from the shop.

Dave:It’s like knowledgeable sport jersey and-

Kathy:It exhibits my weapons. Have a look at that.

Dave:It does. It does present your weapons. And since you’re doing so nice in the present day, we’re going to have you ever go first. Inform us in regards to the market you’ve been researching as a current host of the Tremendous Bowl.

Kathy:Effectively, this metropolis had the Tremendous Bowl 5 occasions. The inhabitants is 3.2 million and the inhabitants progress is 1.9%. Unemployment is at a really low 3.1%. Median earnings is $60,000 roughly, and the median hire is about $2,000. Hire progress has been 2.7%, which appears low, however possibly excessive contemplating this previous yr. And the median dwelling costs, $372,000 with value progress at a whopping 1%. Who is aware of what metropolis that is?

Dave:I do as a result of studying it.

Kathy:In your notes.

Dave:Yeah, I’m studying it. Yeah, I might see it. It’s Tampa, Florida. I’ll aid you out.

Kathy:Thanks.

Dave:Tom. Brady’s most up-to-date Tremendous Bowl profitable group.

Kathy:Yeah, so Tampa, Florida, would I make investments there? Not solely would I. I do, however not particularly within the metropolis. And I feel that is one thing that folks ought to actually take note of is that they’ll see these massive metropolis names as a terrific place to speculate, however oftentimes it’s not truly within the metropolis, it’s within the surrounding suburbs the place it simply gotten too costly within the metropolis and other people transfer out and jobs transfer out as a result of they’ll get cheaper land and so forth. So we do make investments, however not in Tampa, good exterior, primarily St. Petersburg, however in and round Tampa.

Dave:Kathy, truly inform us a bit of bit about that as a result of numerous what we speak about right here on the present is kind of on the metro degree, like the entire metropolitan space, however you’re speaking about differentiating it. So while you first began investing in that space, how did you determine that St. Pete was a greater possibility for investing than the downtown space of Tampa?

Kathy:Effectively, after I first, first began investing in Tampa, it was in 2009 when the housing market had fully crashed and I used to be in a unique metropolis just about day by day simply attempting to choose up the items of that mess. There have been entire neighborhoods boarded up, Tampa, most of Florida the truth is, was one of many areas that bought hit the toughest as a result of it was one of many areas the place buyers went a bit of nutty and it was pre-demographic progress there. So they’d the suitable concept, they have been simply too early principally into Florida. In order that space went up the best after which got here crashing down the toughest.So after I went to Tampa, we have been discovering properties for 20 to $30,000 for those who can consider that downtown. However the concern was crime. So in numerous these areas the place you probably have numerous boarded houses, you’d have vagrants, you’d have drug sellers, it fully remodeled what had been a center class neighborhood right into a D class neighborhood. So for me, Tampa was, it was simply too scary to speculate there in these neighborhoods. So we simply wanted to look out. A part of what I do is discovering property managers and groups, individuals who can assist me on the time discover these foreclosures, assist me, I reside in California, I didn’t wish to oversee it myself, so discover groups. And a kind of groups was displaying the expansion that was occurring in St. Petersburg.The suburban areas are likely to have much less crime normally, not at all times, however it was actually simply the property supervisor and native group that I discovered there that gave me the perception on the place they’re investing. And once more, that’s how I do it While you’re investigating a metropolis, I feel going, strolling it, speaking to folks, going to the Starbucks, studying the place do folks wish to reside, however most significantly actually attending to know the property managers and the place they make investments as a result of they know all of the secrets and techniques. They know the place who’s calling and who’s desirous to hire.

Dave:I imply that’s a terrific scenario. I’m certain people who find themselves listening to this now wish to spend money on Tampa are a bit of bit jealous. Are there nonetheless good choices to spend money on both Tampa or St. Pete or in that metro space?

James:I feel Tampa is on the upswing for quite a few causes. A, I nonetheless consider there’s numerous relocation popping out of California, popping out of New York, and Tampa is a very popular place for folks to maneuver to. The seashores are superior, the standard of residing’s good, and so they’re additionally bettering the town. They introduced truly in 2023 that the violent crime price truly went down. And they also’re actually working and I do know the entire state of Florida is engaged on getting the crime down, particularly the violent crime, however they’re making progress with their insurance policies. And that’s additionally why it was ranked quantity eight is among the finest locations to reside in America as high quality of residing.And so I feel with these strides after which nonetheless that the attractiveness of Florida from numerous a few of these states with very excessive earnings tax, I feel there’s nonetheless numerous runway there. I personally would transfer to Tampa if it wasn’t such an extended commute flight to Seattle. And so I nonetheless assume there’s going to be a migration in. Decrease taxes, crime lowering versus for those who take a look at some components of California it’s growing, and so high quality of residing’s going. It’s simply coming round. It’s engaging. I’d transfer there for certain.

Dave:So what would you suggest Kathy to people who find themselves on this space? What sort of ways work proper now?

Kathy:I feel in Tampa metropolis, within the metropolis space, I think about there’s nonetheless plenty of alternative to renovate. In case you’ve bought the abilities of James Daynard or Henry Washington and you’ve got groups arrange there and may discover older properties, repair them up. It’s a rising metropolis for certain. And James wasn’t kidding, these seashores are attractive, however costs have been excessive. I imply costs have gone up quite a bit since 2009, so it’s going to be a bit of bit dearer versus once more, the suburbs.

Dave:Tampa, I completely agree. I truly bear in mind, I feel it was our second present ever, all of us picked markets that we actually appreciated and I feel Tampa was the one I picked. There’s loads to love there on the basics degree, however it’s important to regulate ways and kind of just remember to’re utilizing the suitable ones for an costly kind of market. With that, after we’ve talked about Tampa, let’s transfer on to our second metropolis. And for that, let’s go to James.

James:All proper, the market I’m overlaying is Los Angeles, one of many largest cities in our nation. It has hosted the Tremendous Bowl eight occasions. Their new stadium, SoFi Stadium, is totally wonderful. I’ve been there a couple of completely different occasions. I do know that they did what Los Angeles likes to do and overspend and overbuild. I feel they spent what, $4 billion constructing the stadium, which was 4 occasions what they spent in Atlanta. However in any case, inhabitants is 12,872,000, and the priority is the inhabitants progress has dropped by 0.77% this yr. Individuals are beginning to go away California. Costly life, a bit of bit extra crime, and so they’re wanting elsewhere to make their greenback stretch. Unemployment is at 4.9% and the median dwelling value, and like Kathy talked about, it relies upon for those who’re in metropolis or out of metropolis as a result of for those who’re in LA correct, it’s going to be considerably extra. After which the median hire is at $2,858, with hire progress of two%.And now usually, and I’ve seen too with LA, it will get regular, hire progress, due to the regulation to the place you may solely improve it at a sure factors. So there’s very regular, however it’s by no means actually leaping that top. LA is simply a kind of massive cities you could make some huge cash in, spend money on, particularly I feel for those who’re a developer or flipper, it’s form of the very best avenues to have a look at doing there as a result of there’s nonetheless some huge cash pouring in, stock’s nonetheless low. And even with I feel among the points that LA’s having proper now, individuals are nonetheless interested in it. It’s nonetheless that, “Hey, we wish to transfer to LA,” that LA dream. And I feel it’s good for the quick time period.Personally, I’d by no means make investments there long run. There may be method an excessive amount of hire management occurring. There’s a ton of regulation. And if I used to be any So Cal market, I’d truly decide Orange County over LA as a result of we’re seeing some large progress in Orange County as a result of the crime that’s occurring in LA, individuals are reloading out, they don’t wish to transfer off that coast of California as a result of they’ll’t discover a higher spot, however they’re going to locations which can be a bit of bit extra secure. I do know in Newport Seashore, we’re seeing costs simply climb yr over yr and it’s all that LA cash promoting and bringing the money down south.

Dave:So lengthy story quick James, and thanks for sharing all that info, that’s actually useful, would you make investments there?

James:I’d not make investments there. For me, I wish to spend money on climates that welcome improvement and progress. And there are such a lot of laws simply pumping by California on the common. Along with the largest concern is what is occurring within the again finish is inflicting large issues. You may’t even get dwelling insurance coverage. It’s close to unimaginable to get dwelling insurance coverage in California. That may be a fundamental want of buyers and householders. And when you’ve gotten a fundamental want that’s being taken off the desk, that may trigger points out there normally. It’s loopy what it’s important to do to get simply even that easiest factor, dwelling insurance coverage. If you wish to purchase a property, there’s a lot regulation between what you are able to do. So if I used to be compelled to speculate there, I’d flip and do improvement. I wish to be out and in. I don’t need their fingers on me for longer than 12 months and get out. However I’d positively decide elsewhere.And in addition tying into the soccer, I’ve a basic drawback investing in LA, the LA Rams, or investing in San Francisco, San Francisco 49ers. I simply received’t assist them.

Kathy:Hey now.

Henry:See, that is the issue with sports activities fanatics is you’ll make monetary selections about your cash and wealth primarily based on completely nothing that has to do with funds. The fanaticism is insane to me.

Dave:I grew up in New York and I’m an enormous Yankees fan and I for work for some time needed to transfer to Boston. And it wasn’t simply monetary selections, I used to be only a depressing individual for six months. I simply hated each single factor I noticed or did for six months. It actually does impression your entire life, Henry. You simply begin committing your self to this.

Kathy:And James, these have been combating phrases in regards to the 49ers. I’m third technology San Franciscan. Not anymore. I did transfer to LA County, however I imply what a narrative although. Come on you guys. It’s important to admit that the 49er Brock Purdy story is wonderful. He was third string, he was thought-about Mr. Irrelevant. Let Brock Purdy fully encourage you to by no means hand over, by no means hand over.

James:Very related, love the man’s story, however I hope he will get smashed by the Chiefs within the Tremendous Bowl. There’s numerous gamers I like individually on the 49ers, however as a complete they get crushed and I’m blissful.

Dave:Effectively, I don’t assume anybody right here is standing up for LA as an investing market. There’s loads, like James stated. Personally, I’ve by no means spent numerous time in LA however it does appear to be the stats don’t appear overly encouraging.All proper, we’re going to take a fast break. Simply to remind everybody, we talked about Tampa, which everybody did appear to assume had sturdy fundamentals. Talked about LA subsequent, which most likely overpriced. James talked about laws that most likely weren’t good for investing. And after this, I’ll share the market that I’m going to be sharing, and so will Henry.Welcome again everybody. Now for our third market, I’ll be sharing, so blissful I get this metropolis, it’s considered one of my favourite cities within the nation, the world. I like visiting this metropolis a lot. It has possibly the very best sandwich I’ve ever had in my entire life, and that’s not an exaggeration. It’s New Orleans, Louisiana, and I do know I don’t know learn how to say it appropriately. I’m from the Northeast, I’m proud, I’m sorry. However New Orleans, Louisiana has hosted the Tremendous Bowl a whopping 10 occasions. It has a big inhabitants however it’s declining. So that’s one thing that I personally consider as a pink flag after I make investments anyplace is a inhabitants that’s declining. It’s not essentially one thing you could’t spend money on, however it’s one thing that I fear about. Would any of you make investments someplace the place the inhabitants is declining?

Kathy:I’ve. I wouldn’t do it once more. What about you Henry?

Henry:It is dependent upon how lengthy. If it’s a decline, I’m seeing a decline over 5 years historical past, then most likely not. But when it’s a blip on the radar, then I most likely wouldn’t have an issue with it.

Dave:That’s a very good level, Henry, as a result of I ponder how a lot of it’s COVID and migration patterns modified a lot, and a few of them are proving and searching like they’re everlasting, or no less than not everlasting, however the tendencies are enduring previous simply the pandemic. However a few of them are beginning to reverse. So I do assume you most likely do wish to observe Henry’s recommendation and look a bit of bit broader there.However the one factor that does are likely to occur with decrease inhabitants, decrease progress cities is oftentimes you discover that there’s higher cashflow potential. And that stood out to me after I checked out among the stats right here about New Orleans is that the hire to cost ratio is about 0.7. That’s greater than double what it was in LA and considerably increased than it was in Tampa. And so it does enable for attention-grabbing cashflow alternatives, however alternatively it’s experiencing one of many largest corrections in all the nation with costs dropping over 8% final yr. So to me, this can be a little bit dangerous, particularly it’s a market I’ve visited and luxuriate in visiting however don’t know a lot in regards to the fundamentals. I’d most likely avoid this till we noticed some kind of bottoming of the market as a result of an 8% drop, that’s important. That’s not a one-year correction. That’s one thing that would actually harm for those who have been on the improper finish of that decline. Any of you’ve gotten any ideas on New Orleans?

Henry:Effectively, I feel New Orleans as a metropolis is wonderful. It’s most likely my second favourite metropolis within the nation. I feel what I wish to say about all of those markets is sure, we’re giving our opinion on whether or not we might make investments there or not, however there are funding methods that might work in all of those markets. By way of New Orleans, I feel you’re 100% proper. In case you’re on the lookout for a market the place you will get money movement, possibly you reside there, it’s in your yard, you’ve bought some kind of benefit and understanding the neighborhoods and having boots on the bottom and a group you may construct, it’s a good marketplace for cashflow. New Orleans isn’t going away tomorrow as a result of it’s had inhabitants decline, proper? It’s round. It’s going to be round. And for those who perceive the market and also you perceive learn how to discover offers, I feel you may make nice money movement.Are you getting appreciation proper now? No. It’s bought detrimental value progress, however I don’t know that that’s going to final eternally because the rates of interest come down. However while you take a look at one thing like Tampa, what we talked about earlier, you may virtually get the very best of each worlds in Tampa due to the expansion that that market is seeing and since you’ve gotten constructive inhabitants progress and you’ve got inexpensive dwelling pricing, proper? You’re at 372 there for median dwelling value, which suggests you may most likely go in there, discover an off market deal and get it to money movement as a result of the median rents are $2,000. Now’s going to money movement a ton? No, most likely not. So you may most likely get money movement and appreciation in Tampa for those who look laborious sufficient, the place Los Angeles, you may’t maintain something there, proper? You’re not going to get money movement, however the margins on flips are wonderful.You may flip one home in California and make what it might take me like 5 flips to make due to the margins are so giant as a result of the house costs are a lot extra there. However you’ve bought a list drawback, you’ve bought 12 to 13 million folks, you’re going to have the ability to promote these houses so you will get nice margins for those who’re turning cash. So there’s methods that work all over the place. In case you’re going to show cash, like I stated, you are able to do a flip. I get jealous each time I see Tareq flip a home on the market and make like $250,000 and I’m like that’s six flips for me. So there’s a technique that works in all of those.By way of New Orleans, yeah, I feel you bought to go for money movement and I feel it’s important to perceive the market as a result of one other factor that’s going to play in New Orleans is crime, and so you bought to grasp the place am I shopping for these houses? What’s the crime going to be like? And issue that into your technique, your buy value. And I’m not saying you shouldn’t spend money on an space the place there’s crime. I’m saying A, you bought to be constructed for that, and B, you bought to plan it into your numbers. It’s like Walmart. You assume Walmart doesn’t plan for stuff to get stolen from shops? They plan it into their numbers after they’re constructing out shops and determining the place they’re going to go. So that you simply have to grasp these markets.

Kathy:Henry, I’m simply curious since you stated you’d need to do 5 – 6 flips to make that very same form of cash. Do you assume it takes the identical sort of time and cash and also you’re simply doing one massive flip 5 alternative ways and possibly that’s higher diversification?

Henry:I’d say the timeframe isn’t any completely different actually. An enormous renovation is an enormous renovation. It takes the identical period of time for those who’ve bought your groups and your contractors in place. I feel the distinction is the chance concerned while you’re flipping in LA due to the holding prices. So if I’m doing two flips in LA and I paid $600,000 for every a kind of homes and I’ve a 12% curiosity solely mortgage from James Daynard as a result of he expenses me a complete lot of cash to do this, then I’m going to need to get them issues turned quick or else I’m paying James numerous my income.

Dave:Then James is making the cash, not you.

James:However it might be bills Henry, however consider your total money on money return. It’s infinite.

Henry:I preserve coming again to you, so it should be good.

James:And we’re reliable. I wish to contact on New Orleans actual fast as a result of it’s an superior metropolis. I adore it. It’s meals, the tradition, the folks. An incredible, wonderful metropolis. I feel it has simply infrastructure issues. I feel like what Henry stated is absolutely necessary. You may spend money on any market, whether or not it’s LA, New Orleans, you simply wish to regulate your technique. The advantage of New Orleans on flipping is you will get actual excessive money on money returns. Entry degree value is small. You may get building loans. They’re normally cheaper, larger fixture properties. And so you may lever extra while you get building loans in order that the quantity you’re placing down on a less expensive property on the massive rehab, your money on money return goes to hit like 50, 60%. And it may not be the identical quantity of revenue, however the velocity in your cash is at all times going to maintain transferring and rising. And so it’s good for that.My concern with New Orleans is that they have police power issues. It’s a bit of little bit of a lawless metropolis while you go there. Once more, I like the town, however they bought some infrastructure issues and for me, I’m already an energetic investor in a market that has crime issues. I don’t wish to go into one other one. It does trigger points, trigger infrastructure, and decide and select. I’d relatively stability right into a safer market at that time.

Dave:Is sensible. All proper, nicely thanks all for sharing your enter. I’m going to share one final piece of recommendation. In case you’re in New Orleans, go to a restaurant known as Cochon Butcher and get the sandwich known as Le Pig Mac. It’s like a excessive finish pig mac with actually good pork patties. It’s actually the most effective sandwiches I’ve ever had in my entire coronary heart. Go verify that out. That is extra necessary to me than actual property. Henry, let’s spherical it out with our final market. What do you’ve gotten for us?

Henry:All proper, final market of the present is Miami. Miami, Florida hosted the Tremendous Bowl 11 occasions. So what about Miami? What I like about Miami right here is common dwelling value $473,000, however they’ve seen a 5.9% improve in pricing over the previous yr. So we’re going up in Miami when it comes to values. The sale to listing value ratio in Miami is 97.3%, which suggests issues are getting listed and promoting for just a bit underneath what they’re getting listed for, which suggests individuals are shopping for the houses there, they’re in demand. And that’s as a result of Miami has a really quickly rising worldwide base that’s transferring there. You’ve bought plenty of folks transferring there from different nations. You’ve bought lots of people transferring there, particularly from Canada proper now. And so that you’ve bought people who find themselves at all times migrating into and touchdown in Miami and so they’re shopping for houses. I feel I learn right here that the demand for houses round that $1 million value level is fairly excessive, so folks with some huge cash have a tendency to maneuver right here and so they’re wanting to purchase these nicer houses.So when it comes to median hire, you’ve bought median grant and about $2,700, so just below $3,000 a month for median hire. You bought median earnings at $77,000 and your median dwelling value is round $472,000. So Miami, I feel it has some respectable fundamentals. You’ve bought $472,000 for the typical dwelling value, you bought about $2,700 for the median hire. So to me that tells me if I can discover a respectable sufficient deal, I can most likely money movement a property, possibly break much more prone to break even than cashflow. So not an excellent nice money movement market, however you’ve bought demand there. And I feel what you actually have here’s a market the place short-term leases and midterm leases would most likely do nicely so long as the foundations would enable for you to have the ability to try this within the completely different areas round Miami as a result of it’s such a vacationer vacation spot. You’ve bought folks at all times touring there to go and have a very good time.And so I feel we’ve form of seen markets the place every one of many widespread actual property methods would work. I feel this can be a short-term rental market the place you may most likely get one thing to fairly nicely as a short-term and midterm rental. It’s a flip market. You can also make good income flipping offers right here since you’ve bought individuals who need these million greenback houses. And so you might go purchase a distressed property for 4 or 5, 600,000, put a pair hundred into it and promote it for over 1,000,000 since you bought demand there. And if you need money movement, you’re most likely going to need to work actually, actually laborious to discover a whole lot.

Kathy:Right here’s what confused me about Miami. I like Miami. I like to go to. I like Miami Seashore and journey my bike there alongside the seashore each time I get to go there for conferences. So nice metropolis. What’s complicated to me is that I feel President Biden stated that the largest disaster we’ve got in the present day is local weather change, which is there’s numerous crises, however you hear this and that but corporations are flocking to Miami. I’d assume that Miami could be primary in local weather change disaster doubtlessly, however that metropolis has grown like loopy. So apparently folks aren’t taking note of that or they don’t agree with Biden in that. However that issues me as a result of it looks as if Miami could be proper in direct line of hurricanes after which they’ve been saying for years that metropolis’s sinking into the ocean. So I don’t know, possibly it’s not as dangerous as they are saying, however that to me is the largest concern and that most likely displays within the insurance coverage.

James:And Miami’s insurance coverage has elevated dramatically and that’s what makes it laborious to be a purchase and maintain investor there. It’s 31% increased than the nationwide common and is climbing yearly, and it’s additionally one other powerful state to get insurance coverage in. And so the money movement is a bit of bit tight in that market. After which while you begin stacking on these insurance coverage prices and the property taxes which can be growing as a result of the market is transferring up, it does make it laborious to be a purchase and maintain investor. I do like the basics of high quality residing, the decrease taxes, the attractiveness of the investor, however these prices are an actual concern for buyers.

Henry:I simply did a fast search and what I’m seeing right here is the typical price for a coverage with a $300,000 dwelling protection is roughly $3,500 per yr, which is 56% increased than the Florida common and 104% increased than the nationwide common. That’s loopy.

Dave:104% increased.

Henry:That’s insane.

Dave:Okay. I’ve heard from a few actual property buyers who I do know who’re attempting to get out of Florida purchase and maintain simply because the prices simply aren’t well worth the taxes and the bills. It’s actually attention-grabbing as a result of folks are likely to wish to go to Florida as a result of there’s no state earnings tax, however states want to lift cash someway. And they also typically try this by property taxes and that, particularly for those who’re an out-of-state investor, disproportionately impacts you negatively, proper? Since you don’t get the good thing about no earnings tax as a lot as you’ll for those who reside there, however it’s important to pay increased property taxes. Occurs in Texas too. So it’s simply one thing that it’s important to take into consideration for those who’re going to think about investing in considered one of these markets.

Kathy:Dave, I’m so glad you introduced that up as a result of folks do give California a tough time. And one factor that we truly do have in our favor is absolutely low property taxes and so they keep there. They solely go up very small quantities yearly. So I do have two short-term leases within the Los Angeles County space and so they’ve carried out very well. However there are laws that folks want to pay attention to in the case of short-term leases and be sure to observe them. However property, I imply our property taxes are 0.07% in Los Angeles County. That’s actually low.

Henry:That’s tremendous low.

Dave:Yeah. The nationwide common for property tax is about 1% only for file, so 0.7 in California could be under. Simply as a benchmark, in Texas it’s 2%. So it’s double that. And which may not sound like loads, however it might probably actually add up.

Henry:Oh boy.

Kathy:And a few areas are 3% or 4%, however our insurance coverage in California positively trumps everybody, even Florida. It’s worse right here in California.

Dave:All proper, earlier than we get out of right here, I must know your picks. James, because you’re the one certified individual right here, who do you assume?

James:You bought to go Chiefs. I essentially can not root for the Niners.

Kathy:Hey, hey, hey now.

James:Go Mahomes.

Dave:All proper. Kathy’s a homer, so we already know this one.

Kathy:Hear, Brock Purdy, he’s the age of my daughter. How are you going to not love him? You simply bought to like him. He’s bought to … Come on.

Dave:I’m probably not following that logic.

Henry:Yeah, I don’t know if I’m following both logic.

Kathy:I imply, okay, so Taylor Swift, I do wish to see Taylor Swift within the viewers too. So what? All good. Each groups, they need to each win both method. Let’s make it a tie.

Dave:One among my buddies is an enormous Chiefs fan, so I’ll simply say Chiefs. What about you, Henry?

Henry:Effectively, not like these two folks, I’m truly going to make a prediction primarily based on the soccer ability that’s concerned in enjoying this sport. James received’t decide the 49ers as a result of he can’t, emotionally can’t, and Kathy thinks Brock Purdy is fairly. So I simply assume Kansas Metropolis is the higher group. I feel Patrick Mahomes is enjoying phenomenally.

Dave:So good.

Henry:He’s the most effective quarterbacks we’ve seen play the sport of soccer in a very long time. Sure, you take a look at among the greats and I feel when it’s all stated and accomplished, he’ll be up there with among the greats. It’s simply unbelievable to look at what he can do with a soccer. And I feel that as a result of he’s relationship Taylor Swift, his soccer ability has been downplayed. So Travis-

Dave:He’s not relationship Taylor Swift. Travis Kelce is relationship Taylor Swift.

Henry:No, I’m speaking about … No, that’s the place I used to be going. I transitioned. As a result of he’s relationship Taylor Swift, his soccer expertise have been downplayed, however Travis Kelce is unbelievable and has been enjoying phenomenal. I imply look, I grew up a Raiders fan, so I shouldn’t even be allowed to say this, however Kansas Metropolis goes to win and it’s fairly cool watching how nicely they’ve been enjoying.

Dave:All proper, nice. Effectively, thanks in your predictions, your insights, your actual property dialogue, and all of the nonsense that went on within the present. It was numerous enjoyable. Thanks all a lot for listening and we recognize it. I hope you all get pleasure from your Tremendous Bowl festivities for those who’re watching. I do know not everybody even likes watching it. To be trustworthy, this can be my first time watching it in like three or 4 years, however I’m excited to do it with all of you. Once more, if anybody’s within the Denver space on the twelfth, we’re having a meetup, make sure that to only Google that. Yow will discover that on BiggerPockets. Thanks for listening and we’ll see you for the following episode of On The Market.On The Market was created by me, Dave Meyer, and Kailyn Bennett. The present is produced by Kailyn Bennett, with enhancing by Exodus Media. Copywriting is by Calico Content material, and we wish to lengthen an enormous thanks to everybody at BiggerPockets for making this present attainable.