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December 27, 2008 at 2:03 PM #320948
davelj
Participant

Agree with jp. Unless someone can convince you that these units would rent for more than $1500/month, anything above $225K seems too high.

Here’s the developer’s site: http://www.mpcondos.com/property_list.php?property_status=Now%20Selling

Note the property at the top listed for $139,900 that rents for “$1495-$1595 per month.” I see the following exchange between you and Maisel Presley:

You: Why are you selling this other property for 8x annual rent but you’re trying to sell me this property for over 17x rent?
MP: Well, this property here is nicer than the other property.
You: Well doesn’t the rent for this property here reflect the fact that it’s “nicer”? And, if so, then why should I pay a higher multiple?
MP: Well… ummmm…

Condos are just apartments that are owned. Back into the (approximate) value based on the rent. That is, use the rent as the starting point to determine value, not the asking price.