[quote=FormerSanDiegan][quote=sdduuuude][quote=birmingplumb]Don’t think 1,000 month return is enough on 240k and it’s super high offer for Detroit suburb as I valued it 175k 3 yrs ago. Timing. Motown[/quote]
I would have asked the “what would I do with 200K to make $1000/month” question before selling it. If no answer, then don’t sell. If lots of answers, then sell.[/quote]
I second this point.
But, to properly analyze your situation you would need to understand what a 5% cap rate is. In fact, before getting into the property this should have been understood. Regardless, you are where you are…
You cannot get anything anywhere close to risk-free 6% return on your money. You can (obviously form your example) get that by investing in property.
flu’s suggestion, gets you reasonably close (though you’ll likely net less from your daughter in San Diego than you would in a Detroit suburb)[/quote]
Dumb question.
What you folks think is typical in SD…say in a not-so-shaddy area?
I’m sure I’m oversimplifying things, but
Hypothetical situation…
Assume a cost of a condo is like $140000, and the monthly rental is $1200 and property tax is $1400/year and HOA is $255/month (assuming repairs are neglible), cap rate is (14400-1200-3060)/140000 or 7.3%…right? I guess a more effective rate would also factor in other costs (like repairs and expected vacancy??)
Again, I’m just an amateur here…So someone school me.
