re: Bought a House in 2010

no, i am just stupid and much less intelligent than you.

been watching too much "Flip this House"

You really need to take a real estate investing course.

Even if you sell this house for $420k you profit nowhere near $50k. You put $20k in renovating.

That brings you now down to $30k. I'm going to assume you have a mortgage and it's a 30 year note. So if you got a descent deal in 2010 around 4.75% then you will pay roughly $23k in interest by the end of 2011.

So now you're $7k up. You still haven't paid any property taxes or insurance. If you do sell before the 2 year cut off your subject to capital gains tax.

I'm going to venture to say that by the time it's all said and done you won't "really" make any money.

I've seen tons of people get in way over their heads trying to flip houses. They say "I bought it for X and sold it at Y, I made a ton of money."

And I say "Did you finance that transaction? Did you use an agent to sell it? Did you calculate the takes you paid on the property? How about capital gains?"

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This is true. Blanket internet stats don't tell one everything about the New Orleans RE market.

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So if the overall uptown market is down 2%, you're saying it's possible there are smaller areas within this market that have seen double digit appreciation? That would have to mean that other "sub areas" would have to be down 12%-15%. I find these types of swings highly unlikely within what is already considered a sub market.

And it doesn't matter if the house was going to be listed for $500k and he bought it for $370k before it hit the market. The market set that home's fair value at $370k at the time of the transaction.

Oh, I'm not vouching for his particular valuations, just saying that there's a lot of wildcards in place in the New Orleans housing market that can create some skewed differences within certain broad areas such as "uptown." Houses which have been sitting untouched and still damaged since Katrina (of which there are still good numbers "uptown"), and which weren't in any sort of desirable area to begin with are really a completely different "market" than houses in proximity to say Audubon Park, which were completely unscathed and in really good condition. I wouldn't be shocked at all to see the sort of swing you're talking about between those two "sub areas."

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All depends if the seller was knowledgable and not under duress, financial or otherwise to sell....

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One out of every 3 sellers these days is under some sort of duress. Are you trying to tell me those prices don't have any affect on everyone else?