AN, methinks I’ve struck a nerve. You say bring data and then you progress right into the $2200 rent thing, for which I brought at least something. Again, 900 bucks is a fact in my case and you say something about this place might be $3100 now listing for $2200? (really, I don’t get it)
Now if you want specific details of my personal situation, well I’m not really crazy about sharing that, but trust me that I rented the place for a year for $900 dollars less than the owner later asked and never got. Of course, they reduced it over nine months (got it to only $500 more than I was paying, but still no takers). I’d give you the percentages, but I’m pretty confident you could reverse engineer the actual figures. I also spent a lot of time watching markedt rents (being a renter) and can tell you I’ve seen a lot of languishing over market listings over the last 3 years (but saidly I can’t point you to them because craig at the list pulls them down after 2 weeks and I’m not following them right now)
The place I’m in now is *exactly* the same (well, technically, the guy was even more delusional), but he had done it in a different order. He’d listed for a long time at a much higher price for months and I said I’d pay x. I ended up paying x. And he did a two-year lease with me!
I’m not saying the place in your example has a market rent of $1,200 (at all), but I’m also not motivated enough to dig into it (by any stretch). You didn’t bring (solid data), so let’s not call the kettle black. You have no answer for that. That said, I have to agree with BGinRB that sustained rent of $2200 seems a stretch if properties have gotten this low in whatever sub-area this is. Again, I don’t know Eastlake any better than you seem to.
On the interest rate, I simply asked questions. Your interest rate is a (sort of) fact. I saw the 4.25 BofA post in the other thread too and found it notable. You’ll also notice that his APR (the total cost of the money) was a bit higher than that. These are the details you kind of gloss over. Data man, data.
Finally, as I stated, I wasn’t trying to pick apart this specific example, but rather what I perceive as to how your posts are now trending. I thought about giving the quarter million dollar example as well, but as you can see, my posts are already too damn long (and confusing). (at that, it’s still $12,500 which still swallows up the 8 kilobucks). That said, I also believe that the low end has less to fall, so I could be on the wrong end of the numbers here.
All of that said, let me leave you with one final anecdote that is relevant to your example. At the meetup, somebody asked me if they should buy a place in Eastlake becuase it’s so cheap down there. I said, do you like Eastlake? I got a puzzled look and they said not really. So I said, so your strategy is you’ll buy there and someday move/buy where you really want to live? Again, they looked puzzled and said yes. So I said, well you can do that, but understand that you’ll likely have to live there a long time before you have proceeds from that property that you can put it another property. Alternatively, you can rent it out down the road, but you’ll still be challenged with regard to a down for the place where you really want to live. I, of course, said it could turn out better than that, but the odds weren’t looking to be in their favor. The person responded indicating maybe it wasn’t such a great idea after all (but I still sensed puzzlement, which is certainly understandable).
