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Meaningless topic? How Indie "the people's champ" will evaluate his own purchase is a meaningless topic? I thought this board was a place to get advise from economic reality mavens such as yourself? We don't have to debate it. Asking you if you planning on practicing what you preached to the...

lmao. you are so much fun...Indie "the people's champ" for the win! It's all clearly true because Indie says it is. And we still talking about the 839k? Oh, right...now you want to talk about why we talked about 839k...lol. It was in defense of the poor suckers who might be financially ruined...

The real reason is that I had a slow week and I like to discuss economics, valuations and present value models. But when the posts started to get old and overly personal, I was going to just shut up and let it die but when Indie explained he was doing it for the "people," I just couldn't help...

perfect. you have me totally psycho-analyzed. I don't how I can sleep without getting Indie to give me comfort that its all going to be ok. I was hoping to use the bet money to get me from under my mortgage but alas...

Assumptions Annual rent inflation 2.7% (per BLS inflation rate you quoted) Annual house price inflation 0% (since you state you don't know the future.) Mortgage interest rate (factor in points) 4.5% Term of mortgage years 30 years Marginal income tax rate 35% (to qualify for this loan, you...

7 years isn't from me. It is from the patrick.net model you profess to use are your model. Or maybe you didn't notice how that model works exactly? The rental parity model there is driven by an assumption of # of years. It isn't a 7 to 10 year bet. Make it as long or as short as you want in...

lol qwerty. No hard feelings about people I don't know posting things on the internet. Thanks though, manhood comment aside! ;) Agree on work + time...plus it allows Indie to advise and defend the naive against financial ruin apparently.

Hence a contract? Or we make it a sufficient amount for us to "remember" it if you like? We get a charity deduction too. Like I said, any year between 2011 and 2021. Hence a median price of updated 4/2 SFR in TRock in any year from 2011 to 2021 in "2011 dollars?" Any more questions?

I didn't know the crux of our argument has been that I "advised" this house is a better alternative to new stucco homes or the relative "comp-ness" of this house relative to other TR homes....indeed there is no weaseling out of that. So if all the posts we have been making have been at its...

lmao...you did it for the children huh? your sense of morality and righteousness to protect the poor readers of TI from the evil advice of Edhne are to be commended! lol.

You see there's a reason why edhne has been quiet on this particular challenge, it's because he knows the "advice" he offered is complete bullshit. Now he's trying to hide behind his title as an "MBA/CFA/PhD" to mask the fact that he willingly offered shitty advice to someone looking to buy a...

Yup. We'll settle that one in 7 years. Great. Let's get a contract signed today. Give me an email address and I can send it over for your approval and then where should we meet up to sign it?

Haha. Let's see. You claim it is worth 600k. I said you can negotiate with equity sellers and you will be surprised how much you negotiate with a written offer. What does your bet have ANYTHING to do with your claim of it is worth 600k? So your claim is somehow validated if they buy it for...

haha. how about if we change the bet and see who has more economics education, you or me. I don't know you from jack but I am willing to change the bet to simply state that my undergrad in finance, my mba in finance and my CFA better qualify me a tad bit more to talk about "economic concepts"...

I call BULLSHIT. That is exactly what you are doing...making 7 to 10 year predictions to come up with your "fundamental" value. Patrick.nets valuation is entirely based on projections. Even the small increases in rental appreciation or housing depreciation/appreciation makes a huge different one...

I actually stated that even at zero assumption, you are still at rental parity. But your assumptions, my assumptions....Since you are so sure of your fundamental value proposition, let's put money where are internet mouths are. I will bet you $1000 dollars that in 7 years, we will be closer %...

Ok so let's use patrick.net Assume 800k purchase price. Using 2.7% inflation BLS inflation rate used to derive fundamental value for rental appreciation and 1% for home price appreciation. Use 40% margin tax rate. use .1% insurance cost rate. (i don't who pays 4000 dollars on home owners...

@USC. A quick for you. what are rents in that area and what should this house be priced at since you believe it is too high. If you were representing me, what basis would you tell me to avoid buying this house as overpriced?

A "newer" SFR with nice lot size in nice location with access to everything for under 600k. I actually don't think what she wants is possible in Irvine currently. (not a statement of fundamental values, just a statement of where market is! :) ) Hence the frustration.

So let me get this straight. Your definition of fundamental value is to pick a arbitrary point in time and then use the BLS inflation rate to come up with fundamental value basis....perfect. As for my anecdotal evidence of rents, go look up rents for TRock 4/2 SFRs that are nicely done...or ask...