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(former)FormerSanDiegan
ParticipantAll I know is that Zillow estimates can be way off.
For example, I have a rental that Zillow values at about 525K. The house next door, same size, same vintage, but in better condition is listed for under 400K and has been on and off the market for over 6 months. In that case, Zillow overstates the value by at least 30%.
The funny thing is that up until January or so, it had my property value somewhere right around 400K. Then, they implemented a “new more accurate method” that completely gets my place wrong.
ParticipantZillow is great.
According to Zillow …
Bad news … My house went down by 13K in the past 30 days.
Good news … My house has gone up by over 200K in the past year (even while the Zip code area declined by 8% in the same year). I guess it’s true that everyone else’s house is declining, but mine is special.ParticipantZillow is great.
According to Zillow …
Bad news … My house went down by 13K in the past 30 days.
Good news … My house has gone up by over 200K in the past year (even while the Zip code area declined by 8% in the same year). I guess it’s true that everyone else’s house is declining, but mine is special.ParticipantZillow is great.
According to Zillow …
Bad news … My house went down by 13K in the past 30 days.
Good news … My house has gone up by over 200K in the past year (even while the Zip code area declined by 8% in the same year). I guess it’s true that everyone else’s house is declining, but mine is special.ParticipantZillow is great.
According to Zillow …
Bad news … My house went down by 13K in the past 30 days.
Good news … My house has gone up by over 200K in the past year (even while the Zip code area declined by 8% in the same year). I guess it’s true that everyone else’s house is declining, but mine is special.ParticipantZillow is great.
According to Zillow …
Bad news … My house went down by 13K in the past 30 days.
Good news … My house has gone up by over 200K in the past year (even while the Zip code area declined by 8% in the same year). I guess it’s true that everyone else’s house is declining, but mine is special.ParticipantOK. In all seriousness, that would be about 7% gross on a small property (4-unit). Since its 4 units you can get a conforming loan at about 6.5% with about 25% down.
That’s not horrible. But not great, because after maintenance it is likely to have little or negative cash flow.P&I = 4000 / month
INsurance = 200 /month
Taxes = 800 / month
Total PITI = 5000 per monthMaintenance might be ~ $700 for month long-term average
So, this would only make sense if you are assuming appreciation. Also, what about property management, probably another 500 per month if not self-managed.In an all cash deal, you might expect to net about 4-5% of your investment after expenses (before taxes). IN that case it would only make sense if one had a large carryover loss from a previous property or something.
This is far from a great deal, but seems appropriately priced for last years’ market expectations (soft landing).
I’d bet that if someone bought this today, they would do pretty well over the next 20 years, but I think that there will be much better deals than this over the next couple years. Just my amateur opinion.ParticipantOK. In all seriousness, that would be about 7% gross on a small property (4-unit). Since its 4 units you can get a conforming loan at about 6.5% with about 25% down.
That’s not horrible. But not great, because after maintenance it is likely to have little or negative cash flow.P&I = 4000 / month
INsurance = 200 /month
Taxes = 800 / month
Total PITI = 5000 per monthMaintenance might be ~ $700 for month long-term average
So, this would only make sense if you are assuming appreciation. Also, what about property management, probably another 500 per month if not self-managed.In an all cash deal, you might expect to net about 4-5% of your investment after expenses (before taxes). IN that case it would only make sense if one had a large carryover loss from a previous property or something.
This is far from a great deal, but seems appropriately priced for last years’ market expectations (soft landing).
I’d bet that if someone bought this today, they would do pretty well over the next 20 years, but I think that there will be much better deals than this over the next couple years. Just my amateur opinion.ParticipantOK. In all seriousness, that would be about 7% gross on a small property (4-unit). Since its 4 units you can get a conforming loan at about 6.5% with about 25% down.
That’s not horrible. But not great, because after maintenance it is likely to have little or negative cash flow.P&I = 4000 / month
INsurance = 200 /month
Taxes = 800 / month
Total PITI = 5000 per monthMaintenance might be ~ $700 for month long-term average
So, this would only make sense if you are assuming appreciation. Also, what about property management, probably another 500 per month if not self-managed.In an all cash deal, you might expect to net about 4-5% of your investment after expenses (before taxes). IN that case it would only make sense if one had a large carryover loss from a previous property or something.
This is far from a great deal, but seems appropriately priced for last years’ market expectations (soft landing).
I’d bet that if someone bought this today, they would do pretty well over the next 20 years, but I think that there will be much better deals than this over the next couple years. Just my amateur opinion.ParticipantOK. In all seriousness, that would be about 7% gross on a small property (4-unit). Since its 4 units you can get a conforming loan at about 6.5% with about 25% down.
That’s not horrible. But not great, because after maintenance it is likely to have little or negative cash flow.P&I = 4000 / month
INsurance = 200 /month
Taxes = 800 / month
Total PITI = 5000 per monthMaintenance might be ~ $700 for month long-term average
So, this would only make sense if you are assuming appreciation. Also, what about property management, probably another 500 per month if not self-managed.In an all cash deal, you might expect to net about 4-5% of your investment after expenses (before taxes). IN that case it would only make sense if one had a large carryover loss from a previous property or something.
This is far from a great deal, but seems appropriately priced for last years’ market expectations (soft landing).
I’d bet that if someone bought this today, they would do pretty well over the next 20 years, but I think that there will be much better deals than this over the next couple years. Just my amateur opinion.ParticipantOK. In all seriousness, that would be about 7% gross on a small property (4-unit). Since its 4 units you can get a conforming loan at about 6.5% with about 25% down.
That’s not horrible. But not great, because after maintenance it is likely to have little or negative cash flow.P&I = 4000 / month
INsurance = 200 /month
Taxes = 800 / month
Total PITI = 5000 per monthMaintenance might be ~ $700 for month long-term average
So, this would only make sense if you are assuming appreciation. Also, what about property management, probably another 500 per month if not self-managed.In an all cash deal, you might expect to net about 4-5% of your investment after expenses (before taxes). IN that case it would only make sense if one had a large carryover loss from a previous property or something.
This is far from a great deal, but seems appropriately priced for last years’ market expectations (soft landing).
I’d bet that if someone bought this today, they would do pretty well over the next 20 years, but I think that there will be much better deals than this over the next couple years. Just my amateur opinion.ParticipantConsider this as an investment with a 4.2% dividend (3000*12/849000)*100. Now, we all know that real estate appreciates by 10% annually. You know that RE investing is all about capital appreciation. This property gives you that PLUS a 4.2% dividend. Compare that to the S&P 500 which pays less than a 2% dividend.
That’s why that property is worth 850K. Heck, if you measured the price in bags of rice, you’d realize that it’s at an all time low. Once people price in future appreciation, prices should go up from here. This property beats the 2% you’re getting in your passbook savings account. Plus, they aren’t making any more land in the OC. [/sarcasm]ParticipantConsider this as an investment with a 4.2% dividend (3000*12/849000)*100. Now, we all know that real estate appreciates by 10% annually. You know that RE investing is all about capital appreciation. This property gives you that PLUS a 4.2% dividend. Compare that to the S&P 500 which pays less than a 2% dividend.
That’s why that property is worth 850K. Heck, if you measured the price in bags of rice, you’d realize that it’s at an all time low. Once people price in future appreciation, prices should go up from here. This property beats the 2% you’re getting in your passbook savings account. Plus, they aren’t making any more land in the OC. [/sarcasm]ParticipantConsider this as an investment with a 4.2% dividend (3000*12/849000)*100. Now, we all know that real estate appreciates by 10% annually. You know that RE investing is all about capital appreciation. This property gives you that PLUS a 4.2% dividend. Compare that to the S&P 500 which pays less than a 2% dividend.
That’s why that property is worth 850K. Heck, if you measured the price in bags of rice, you’d realize that it’s at an all time low. Once people price in future appreciation, prices should go up from here. This property beats the 2% you’re getting in your passbook savings account. Plus, they aren’t making any more land in the OC. [/sarcasm] -
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