Absolutely agree with Perry don’t ever leave that deal!
On the larger topic of the Fundamental Value of the home that is somewhat subjective isn’t it? You are getting a smokin deal most like cuz your landlord owns the home outright, pays pennies in property tax, etc… There may be an identical home (from a square footage and age perspective) that is much more expensive to own. I think Perry recently we both answered a post about the person who had the elderly aunt in UC. Perry didn’t you use a 12x multiplier to come up with 250k for a 2/2 UC condo?
Anyways the point is that I think that once more the fundamental value of a home is always determined by the market. I know I am straying off the subject but I have been reading alot about information theory and how it can be applied to markets. These markets can be the stock market, or even games of chance like vegas gaming. Of course the housing market, to me is just another market. Value of the commodity is determined by the market. People make money by entering or leaving the market correctly.
Sorry for not answering the question but I guess my point is that I really do not think there is a numerical answer. These math geek books I am reading would state at some point the probability is high that you will make money on the purchase of that home and at other points the probability is low. Right now the probability is low. So a math guy, or people subscribing to this sort of stuff, never put value on the commodity itself, they use distributions to know when the commodity is overpriced or underpriced verses the probability distribution they create for the market that they are analyzing…
Maybe I should stop reading this stuff (these information theory books) as they are warping my brain.
