[(former)FormerSanDiegan]

Was that Lex Luther? I heard he’s going to be the new fund manager of Blackstone.

Yes, it was Lex. It’s too bad he is going to the dark side and working for Blackstone. He’ll probably do more harm there than in his old job.

[(former)FormerSanDiegan]

Was that Lex Luther? I heard he’s going to be the new fund manager of Blackstone.

Yes, it was Lex. It’s too bad he is going to the dark side and working for Blackstone. He’ll probably do more harm there than in his old job.

[(former)FormerSanDiegan]

Was that Lex Luther? I heard he’s going to be the new fund manager of Blackstone.

Yes, it was Lex. It’s too bad he is going to the dark side and working for Blackstone. He’ll probably do more harm there than in his old job.

[(former)FormerSanDiegan]

Was that Lex Luther? I heard he’s going to be the new fund manager of Blackstone.

Yes, it was Lex. It’s too bad he is going to the dark side and working for Blackstone. He’ll probably do more harm there than in his old job.

[(former)FormerSanDiegan]

Was that Lex Luther? I heard he’s going to be the new fund manager of Blackstone.

Yes, it was Lex. It’s too bad he is going to the dark side and working for Blackstone. He’ll probably do more harm there than in his old job.

[(former)FormerSanDiegan]

I heard of this guy once who bought up a bunch of land in Arizona and Nevada in advance of a potential quake.
He had big development plans. Part of which depended on the land being ocean front property in the future.
He had planned to split apart the San Andreas fault-line using Nuclear armaments – the resulting explosion destined to send the entire Californian coastline and its inhabitants to murky ocean depths.

The problem is that these California inhabitants were likely the most lucrative of future customers. Once his accountant ran the numbers he had to save face, so he told his assistant to release Superman at the last possible moment to allow him to save California and foil the plan.

… Or something like that.

I think your best bet is to invest in Kryptonite futures.

[(former)FormerSanDiegan]

I heard of this guy once who bought up a bunch of land in Arizona and Nevada in advance of a potential quake.
He had big development plans. Part of which depended on the land being ocean front property in the future.
He had planned to split apart the San Andreas fault-line using Nuclear armaments – the resulting explosion destined to send the entire Californian coastline and its inhabitants to murky ocean depths.

The problem is that these California inhabitants were likely the most lucrative of future customers. Once his accountant ran the numbers he had to save face, so he told his assistant to release Superman at the last possible moment to allow him to save California and foil the plan.

… Or something like that.

I think your best bet is to invest in Kryptonite futures.

[(former)FormerSanDiegan]

I heard of this guy once who bought up a bunch of land in Arizona and Nevada in advance of a potential quake.
He had big development plans. Part of which depended on the land being ocean front property in the future.
He had planned to split apart the San Andreas fault-line using Nuclear armaments – the resulting explosion destined to send the entire Californian coastline and its inhabitants to murky ocean depths.

The problem is that these California inhabitants were likely the most lucrative of future customers. Once his accountant ran the numbers he had to save face, so he told his assistant to release Superman at the last possible moment to allow him to save California and foil the plan.

… Or something like that.

I think your best bet is to invest in Kryptonite futures.

[(former)FormerSanDiegan]

I heard of this guy once who bought up a bunch of land in Arizona and Nevada in advance of a potential quake.
He had big development plans. Part of which depended on the land being ocean front property in the future.
He had planned to split apart the San Andreas fault-line using Nuclear armaments – the resulting explosion destined to send the entire Californian coastline and its inhabitants to murky ocean depths.

The problem is that these California inhabitants were likely the most lucrative of future customers. Once his accountant ran the numbers he had to save face, so he told his assistant to release Superman at the last possible moment to allow him to save California and foil the plan.

… Or something like that.

I think your best bet is to invest in Kryptonite futures.

[(former)FormerSanDiegan]

I heard of this guy once who bought up a bunch of land in Arizona and Nevada in advance of a potential quake.
He had big development plans. Part of which depended on the land being ocean front property in the future.
He had planned to split apart the San Andreas fault-line using Nuclear armaments – the resulting explosion destined to send the entire Californian coastline and its inhabitants to murky ocean depths.

The problem is that these California inhabitants were likely the most lucrative of future customers. Once his accountant ran the numbers he had to save face, so he told his assistant to release Superman at the last possible moment to allow him to save California and foil the plan.

… Or something like that.

I think your best bet is to invest in Kryptonite futures.

[(former)FormerSanDiegan]

SD R – Thanks.
I didn’t expect it to pencil out as a rental. However, it is getting closer to penciling out when comparing monthly carrying costs versus renting, (depending on one’s income and tax situation).

I figure the monthly carrying costs for purchasing this at 440K at 6.5% interest and 20% down would be approximately equal to renting a place for $2100 per month

Here’s the monthly numbers …
Principal & interest: 2225
interest portion: ~ 1900 (in the first year)
principal: ~325
property taxes: 460
insurance: 100

Assume a 30% tax benefit from taxes & interest (varies depending on income, other deductions, etc) ..

Monthly after tax costs:
after-tax interest : 1330
principal: 325
after-tax prop tax : 322
insurance : 100

Total : 2077

I used to own a rental property on Mt streets west of genessee. When I sold it in 2001 the rent was 1300 per month. I sold it for 270K. That’s a price/rent ratio of 207.

If this house would rent for at least 2125 per month, it would be a ratio of 207.

I don’t think we are at rent/own equilibrium in that neihborhood on the whole yet. But, it is getting close.
Another 5-10% broad decline in prices and we would solidly be there.

After that, the questions become:

1. How much future depreciation will buyers price into their purchases ? (psychology)
2. Rental rates (which depends on economy and jobs)
3. Interest rates (affects the rent vs. own decision)

[(former)FormerSanDiegan]

SD R – Thanks.
I didn’t expect it to pencil out as a rental. However, it is getting closer to penciling out when comparing monthly carrying costs versus renting, (depending on one’s income and tax situation).

I figure the monthly carrying costs for purchasing this at 440K at 6.5% interest and 20% down would be approximately equal to renting a place for $2100 per month

Here’s the monthly numbers …
Principal & interest: 2225
interest portion: ~ 1900 (in the first year)
principal: ~325
property taxes: 460
insurance: 100

Assume a 30% tax benefit from taxes & interest (varies depending on income, other deductions, etc) ..

Monthly after tax costs:
after-tax interest : 1330
principal: 325
after-tax prop tax : 322
insurance : 100

Total : 2077

I used to own a rental property on Mt streets west of genessee. When I sold it in 2001 the rent was 1300 per month. I sold it for 270K. That’s a price/rent ratio of 207.

If this house would rent for at least 2125 per month, it would be a ratio of 207.

I don’t think we are at rent/own equilibrium in that neihborhood on the whole yet. But, it is getting close.
Another 5-10% broad decline in prices and we would solidly be there.

After that, the questions become:

1. How much future depreciation will buyers price into their purchases ? (psychology)
2. Rental rates (which depends on economy and jobs)
3. Interest rates (affects the rent vs. own decision)

[(former)FormerSanDiegan]

SD R – Thanks.
I didn’t expect it to pencil out as a rental. However, it is getting closer to penciling out when comparing monthly carrying costs versus renting, (depending on one’s income and tax situation).

I figure the monthly carrying costs for purchasing this at 440K at 6.5% interest and 20% down would be approximately equal to renting a place for $2100 per month

Here’s the monthly numbers …
Principal & interest: 2225
interest portion: ~ 1900 (in the first year)
principal: ~325
property taxes: 460
insurance: 100

Assume a 30% tax benefit from taxes & interest (varies depending on income, other deductions, etc) ..

Monthly after tax costs:
after-tax interest : 1330
principal: 325
after-tax prop tax : 322
insurance : 100

Total : 2077

I used to own a rental property on Mt streets west of genessee. When I sold it in 2001 the rent was 1300 per month. I sold it for 270K. That’s a price/rent ratio of 207.

If this house would rent for at least 2125 per month, it would be a ratio of 207.

I don’t think we are at rent/own equilibrium in that neihborhood on the whole yet. But, it is getting close.
Another 5-10% broad decline in prices and we would solidly be there.

After that, the questions become:

1. How much future depreciation will buyers price into their purchases ? (psychology)
2. Rental rates (which depends on economy and jobs)
3. Interest rates (affects the rent vs. own decision)

[(former)FormerSanDiegan]

SD R – Thanks.
I didn’t expect it to pencil out as a rental. However, it is getting closer to penciling out when comparing monthly carrying costs versus renting, (depending on one’s income and tax situation).

I figure the monthly carrying costs for purchasing this at 440K at 6.5% interest and 20% down would be approximately equal to renting a place for $2100 per month

Here’s the monthly numbers …
Principal & interest: 2225
interest portion: ~ 1900 (in the first year)
principal: ~325
property taxes: 460
insurance: 100

Assume a 30% tax benefit from taxes & interest (varies depending on income, other deductions, etc) ..

Monthly after tax costs:
after-tax interest : 1330
principal: 325
after-tax prop tax : 322
insurance : 100

Total : 2077

I used to own a rental property on Mt streets west of genessee. When I sold it in 2001 the rent was 1300 per month. I sold it for 270K. That’s a price/rent ratio of 207.

If this house would rent for at least 2125 per month, it would be a ratio of 207.

I don’t think we are at rent/own equilibrium in that neihborhood on the whole yet. But, it is getting close.
Another 5-10% broad decline in prices and we would solidly be there.

After that, the questions become:

1. How much future depreciation will buyers price into their purchases ? (psychology)
2. Rental rates (which depends on economy and jobs)
3. Interest rates (affects the rent vs. own decision)

[(former)FormerSanDiegan]

SD R – Thanks.
I didn’t expect it to pencil out as a rental. However, it is getting closer to penciling out when comparing monthly carrying costs versus renting, (depending on one’s income and tax situation).

I figure the monthly carrying costs for purchasing this at 440K at 6.5% interest and 20% down would be approximately equal to renting a place for $2100 per month

Here’s the monthly numbers …
Principal & interest: 2225
interest portion: ~ 1900 (in the first year)
principal: ~325
property taxes: 460
insurance: 100

Assume a 30% tax benefit from taxes & interest (varies depending on income, other deductions, etc) ..

Monthly after tax costs:
after-tax interest : 1330
principal: 325
after-tax prop tax : 322
insurance : 100

Total : 2077

I used to own a rental property on Mt streets west of genessee. When I sold it in 2001 the rent was 1300 per month. I sold it for 270K. That’s a price/rent ratio of 207.

If this house would rent for at least 2125 per month, it would be a ratio of 207.

I don’t think we are at rent/own equilibrium in that neihborhood on the whole yet. But, it is getting close.
Another 5-10% broad decline in prices and we would solidly be there.

After that, the questions become:

1. How much future depreciation will buyers price into their purchases ? (psychology)
2. Rental rates (which depends on economy and jobs)
3. Interest rates (affects the rent vs. own decision)

[Author]

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