[quote=spdrun]Taxes are about 1.1-1.2% of value at sale, and can increase at 2% per annum to account for increased valuation.
1.2% tax per annum on $1,092,000 is almost $1100/mo ($1092). $42 for HOA. $50 for insurance. Call it $1200 total.
$4000/mo – $1200 = $2800/mo or $33,600/yr.
$33,600 is about 3% of the purchase price of $1,092,000. Not a great rental return for a property, especially since other expenses are neglected in this calculation.[/quote]
I don’t think people buy these places to cash flow them.
Either this was a owner occupied home/kid occupied home while they attended a college here for whatever reason turned into some other purpose, or someone was counting on a future appreciation.
