El Paso Investors Club ©

According to the NAHB’s Eye on Housing Blog, nearly 6.8% of single-family homes started (close to 60k) in 2017 qualified as “tear-down starts.”  While this estimated number is down 10.2% from 2016, it is significant because of an ongoing shortage of new entry-level housing, more and more homes that might be considered starter are being knocked down due to the increased value in land.  A tear-down start is defined as a home built on a site where a previous structure or evidence of a previous structure was present before the new home was started.

“Between 2016 and 2017, the number of single-family tear-down starts remained relatively constant in the Midwest and South Census regions, nearly doubled in the Northeast, and declined by nearly 75 percent in the West (after increasing by more than 200 percent the year before).”

Click here to read the full report on the NAHB’s Eye on Housing.

According to recent data published by the Mortgage Bankers Association, U.S. homeowners are seeing a dramatic increase in the amount of equity in their homes while at the same time seeing a big decline in the amount borrowed through home equity lines of credit (HELOCs) – the lowest since 2008.  Using data from the Federal Reserve, they report that estimates owners’ equity is $14.1 trillion.  However, they do suggest that as interest rates rise, HELOC’s might become more attractive to potential borrowers seeking to preserve the low rate of interest in their current mortgage.

MBA Source: Federal Reserve

Click here to read the full story on MBA.org.

Anyone who has ever flipped a house knows about the potential perils of what kind of wiring the house has and when was it last upgraded.  Depending on the age & condition of the house it could be extremely costly or maybe just a cheap fix.  However, you have to know what to look for and what you’re looking at.  Today’s infographic from John K McCraw Electrical discusses common items in older homes, what you might need a permit for, and some general due diligence items when flipping a home.   Happy Friday!!

A new initiative being developed by Airbnb, in partnership with Fannie Mae and several lenders, would allow homeowners wishing to refinance their homes the ability to count, as income, funds generated from their properties listed on the homesharing site.  According to a recent article on Curbed, Airbnb will supply a Proof of Income statement that hosts can now include when applying with Quicken Loans, Citizens Bank, and Better Mortgage in order to  refinance an existing mortgage.

“This initiative was developed with Fannie Mae to identify new ways of recognizing home-sharing income, making it possible for homeowners to maximize their investment to better reach their financial goals,” Airbnb said in a statement. “The project is part of Fannie Mae’s work to find new, innovative ways to expand the availability of affordable mortgage credit.”

Click here to read the full story on Curbed.com.

In a recent episode of Real Estate News for Investors, Kathy Fettke talks about a corner of the hemp market that she says is “shaking up the construction industry.”  It’s called hempcrete (that’s right hemp + concrete) and it’s a green building material that dates back to the Roman times that is starting to become popular in the U.S.  And, before you ask, industrial hemp contains less than .03% THC (the stuff that gets you high)….marijuana typically contains between 5% and 35% THC.

“Not only is hemp used to create a concrete-like building material, it’s also a fast-growing, sustainable plant. Crops mature in about 4 months. The woody fibers are then mixed with water and lime. When they cure, the result is a strong, lightweight material that is resistant to fire, mold and bugs. It’s also breathable and non-toxic with no off-gassing, and provides exceptional insulation.”

Click here to read the transcript on RealWeathNetwork.com.

Everyone has their favorite way to add value to their investment and get a great return.  The folks at Keeping Current Matters recently illustrated HouseLogic’s top four home renovations for maximum ROI.  Always remember to know your market! 

“While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value.”

Hat tip to Keeping Current Matters.

What makes up a first-time home buyer?  The National Association of Realtors recently put together this handy infographic using data from their 2017 Profile of Home Buyers and Sellers.  So, what do they look like?

• Age – 32 years old
• Household income – $75k
• Cost of home purchased – $190k
• Down payment amount – 5%
• Student loan debt – $29k
• Type and location – Single-family home in a suburban area

Click here to read the whole story.

Fresh Flooring Trends to Improve Investment Properties

By Will Hudson, Laminate and Vinyl Plank Flooring Merchant, The Home Depot

Sleek, stylish flooring is an asset to any investment property. Luckily, recent innovations in flooring materials have increased the possibilities for luxurious yet affordable options. The following five trends are a great place to start when considering new flooring projects.

LET’S GET DIGITAL

Due to new digital printing advancements, flooring styles that previously required premium materials or substantial installation costs now are achievable with less effort and investment. These design technologies eliminate boundaries between flooring materials and produce customizable tiles and planks in whatever style, color or finish. This also includes amplifying realism – if you desire a true-to-life appearance, look no further than rich designs ranging from knots and ripples in wood to wavy colors in marble.

Digital printing also delivers variety that your tenants are sure to appreciate. Today’s floor printing machines reduce the number of repeat designs on tiles and planks, ensuring that the same pattern does not appear in multiple spots within a given room. This produces a more natural feel, and adds realism that will make it harder for renters to detect a difference in material sourcing.

LOAD ON LAMINATES

Much like its wood and tile counterparts, laminate flooring has evolved to a tougher and more attractive form in recent years. Laminate planks now feature a thick, sturdy design and resilient finish that deters scratching, offering a durability advantage for owners looking to rent their properties for years.

As flooring technologies evolve, The Home Depot remains committed to driving innovative new ideas. Our merchants work with leading manufacturers to develop durable and advanced laminate, vinyl and porcelain tile.

We worked closely with Pergo to develop Outlast Plus, a next-level laminate capable of withstanding water for up to 24 hours. This creates new opportunities to bring wood-look flooring into bathrooms, kitchens and other water-centric rooms previously considered off limits. Available exclusively at our stores, this product also includes an attached underlayment that reduces sound and makes installation faster, simpler and more affordable.

RESURGENCE OF VINYL

If you haven’t been involved in a flooring remodel for a while, you might be surprised at the evolution of vinyl. Previously considered primarily a low cost option (think sheet tiles from the 1980s), vinyl floors now come in planks in a variety of trendy printed options, such as wood and stone looks.

Vinyl is 100 percent waterproof, versatile and extremely durable. This makes it a great choice for rental properties that may go through resident transitions from year to year. The vinyl floor will last much longer than a standard carpet and repairs involve swapping out individual planks rather than the whole floor.

Modern vinyl flooring is also easy to apply, with tiles and strips able to go directly over existing surfaces without the need to remove the subfloor. The Home Depot’s exclusive LifeProof luxury vinyl planks uses drop and lock end joints that fall perfectly into place and reduce installation cost and time. Featuring an innovative rigid PVC core that delivers strength while remaining lightweight, LifeProof planks are an excellent choice when you need maximum durability.

GO BIG WHEN GOING HOME

With replica wood and stone becoming more popular, more property owners are gravitating towards large-format tiling and planks. Flooring materials have reached unprecedented sizes in recent years – planks now run as long as four feet in length, squares can go as wide as 16 inches, and rectangles now hit sizes of up to 18×36.

While larger flooring materials are bulkier and require more careful planning to install, they do require less time. To ensure a seamless, gap-free design, use a mortar specifically engineered for heavier tiles or planks. Custom Building Products’ Natural Stone and Large Tile mortar, for example, reduces lippage and produces a more level installation.

ADD LOCAL FLAIR

Flooring design trends are not universal and vary greatly by location. At The Home Depot, we see preferences for different styles of flooring across the country. Texas and the Southwestern region tend to prefer darker grey and brown flooring with a more distressed tone. Properties in more oceanic regions, such as the East and West coasts, not surprisingly go more for lighter grey, white and cream colors that feel cool and casual. Likewise, areas more susceptible to colder winters, such as the Northeast, feature subtle accents ranging from beiges to tans.

Depending on property dimensions and plans for the property, the exact parameters of any flooring renovation will greatly vary. However, an awareness of the latest trends and a mind for creativity can result in a floor that is brilliant, easy to install and a value driver for any property.

Will Hudson, Laminate and Vinyl Plank Flooring Merchant, The Home Depot.  As the flooring Merchant, Will is responsible for merchandising the Laminate Flooring and Laminate Installation businesses for all U.S. stores and homedepot.com. He has been with The Home Depot for 13 years, serving in various merchandising roles.