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These markets are attracting the most out-of-state real estate investors

Driven by affordability and an affinity for overlooked markets, some real estate investors are looking to out-of-state properties.
The post These markets are attracting the most out-of-state real estate investors appeared first on HousingWire.

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The pandemic has shifted the pecking order of the real estate industry’s location-location-location axiom for many homebuyers — high-cost and high-density urban is out, while suburban is back in vogue and rural is experiencing a bit of a revival.

Many real estate investors were serendipitously ahead of this shift even before the pandemic started, driven by both affordability and an affinity for overlooked markets.

“Currently I’m in some of the Southern markets like Alabama, Mississippi, Texas, Indianapolis, Ohio. Those markets I’m able to put a little bit less money in but also make a comfortable amount of return,” said Bijan Green, a Denver-based real estate investor. “A deal for me is a property I can buy for under $100,000, typically.”

Green gave the example of a Fort Wayne, Indiana, property he purchased on Auction.com via a bank-owned (REO) auction in July 2019. Following extensive renovations that took nearly a year to complete, the property was resold to an owner-occupant buyer in July 2020.

Located 125 miles northeast of Indianapolis and about 170 miles southeast of Chicago, Fort Wayne is in Allen County — a top 50 market for out-of-state buyers like Green, according to data from the Auction.com marketplace.

The data shows 30% of all properties purchased via online REO auction in Allen County were to out-of-state buyers, ranking 36th highest among 198 U.S. counties with at least 10 online REO auction sales through the first 10 months of 2020. The 30% of purchases going to out-of-state buyers in Allen County so far in 2020 is up from 21% in 2019 and 11% in 2018.

Allen County fits a similar profile to the top five counties with the highest percentage of out-of-state buyers so far in 2020: counties outside of major metropolitan areas with populations between 60,000 and 200,000. Three of the four counties are home to an army base or other army facility.

Those top five counties were Comanche County/Lawton, Okla. (75% out-of-state buyers); Calhoun County, Ala. (60%); Richmond County/Augusta, Ga. (56%); Salem County, N.J. (56%); and Rock Island County/Quad Cities, Ill. (54%). See sidebar for more details on these markets.

Investing Where the Heart Is

Out-of-state buyers often have a personal connection or special affinity for the markets where they are purchasing, even if those markets are literally across the country. San Francisco-based real estate investor Will Wenzel started purchasing distressed properties in his hometown county of Fairfield County, Conn. — 2,959 miles away from San Francisco — when he had a “Eureka Moment” shortly after the declaration of the pandemic in March.

“We wanted to see the area do well. We wanted to invest capital back into the area in which we grew up,” said Wenzel, who is partnering in the venture with a long-time friend who is a designer and general contractor in Connecticut. “When the pandemic started, we realized that we were at the beginning of a great suburbanization where the millennial generation is moving to the suburbs.”

The Auction.com analysis shows that 58% of online REO purchases made by buyers located in California were for out-of-state properties, the fourth highest of any state behind Utah, Colorado and Arizona. In some coastal counties such as Contra Costa, Los Angeles, Orange and San Diego, the percent of buyers purchasing out of state was above 60%.

Wenzel’s willingness to start buying in the uncertain days and weeks immediately following the pandemic declaration paid off.

“There was just no one else buying,” he said. “It was just a once-in-a-lifetime opportunity.”

Wenzel said competition for distressed properties has picked back up since those early days of the pandemic, but he still sees plenty of opportunity for these value-add investing opportunities given the broader millennial-driven suburbanization trend.

“You have the housing stock sitting on the market and it’s kind of obsolete in terms of being useful to the next generation,” he said, adding that he and his business partner completely renovate the homes they purchase to make them like new construction once completed. “These suburbs, they’ve really been lacking investment the last 10 years. They need people like us to come in and invest with capital and build for the future.”

Top 5 Counties for Out-of-State Buyers

Comanche County, Oklahoma
Located on Interstate 44 about 80 miles south of Oklahoma City and about 200 miles north of Dallas-Fort Worth, Comanche County had a population of 120,749 in 2019, according to data from the Census Bureau. The county experienced a net population increase of 221 people in 2019, its biggest increase since 2012. Lawton, Oklahoma is the primary city in the county and adjacent to the Fort Sill army base.

Auction.com data shows that 75 percent of all REO properties in Comanche County that sold via online REO auction so far in 2020 went to out-of-state buyers — up from 45 percent in 2019 and 29 percent in 2018. The average sales price for REO properties sold so far in 2020 in Comanche County was $28,240 — just $20.10 per square foot.

Calhoun County, Alabama
Calhoun County has attracted the nation’s second highest share of out-of-state buyers so far in 2020 despite a slight decrease in population in 2019. Census data shows a population of 113,605, down by 726 from 2018, for the county, which is located off Interstate 20 about 70 miles east of Birmingham and about 100 miles west of Atlanta. The county seat is Anniston, home to the Anniston Army Depot.

Sixty percent of REO properties purchased via online auction in Calhoun County in the first 10 months of 2020 went to out-of-state buyers, according to the Auction.com data. That was up from 20 percent in 2019 and 50 percent in 2018. REO properties in Calhoun County have sold for an average price of $30,808 so far in 2020. That amounts to $24.10 per square foot.

Richmond County, Georgia
Home to the city of Augusta, Georgia — host of the Masters Golf Tournament — Richmond County is the most populous of the top five counties for out-of-state buyers. Census data shows a population of 202,518 in 2019 and a net population gain of 851 compared to 2018. Augusta is located about 150 miles southeast of Atlanta and about 160 miles northwest of Charleston, South Carolina. The Fort Gordon U.S. Army base is also located in Richmond County.

Auction.com data shows 56 percent of REO properties in Richmond County that sold via online auction in the first 10 months of 2020 went to out-of-state buyers, up from 22 percent in 2019 and 31 percent in 2018. The average price for REOs sold so far in 2020 in Richmond County was $67,880, or $40.80 per square foot.

Salem County, New Jersey
Salem County is the only county among the top five for out-of-state buyers that posted a decrease in its share of out-of-state buyers through the first 10 months of 2020 compared to 2019. The Auction.com data shows 56 percent of REO properties sold so far in 2020 went to out-of-state buyers, equaling the share in Richmond County, Georgia, but down from 60 percent in 2019.

With a population of 62,385 in 2019, Salem County is also the least populated of the top five counties for out-of-state buyers. The county is located only about 45 miles southwest of Philadelphia and about 120 miles northeast of Washington, D.C. Census data shows a net population loss of 361 people in 2019. The average price for REO properties sold via online auction in the first 10 months of 2020 was $70,405, or $44.90 per square foot.

Rock Island County, Illinois
Home to two of the four cities that comprise the Quad Cities on the Illinois-Iowa border, Rock Island County had a population of 141,879 in 2019, down by 742 people from 2018, according to the Census Bureau. The county is home to the Rock Island Arsenal, the largest government-owned weapons manufacturing arsenal in the United States.

The Auction.com data shows that 54 percent of all REO properties purchased via online auction in Rock Island County in the first 10 months of 2020 were to out-of-state buyers. That was up from 40 percent in 2019 and 42 percent in 2018. The average price for REO properties sold via online auction so far in 2020 was $45,719, or $35.40 per square foot

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Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

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Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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