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HLS
ParticipantHLS, you stated earlier that you multiply the monthly rent a place would rent for by 125 and that is the real value of the property. What is the rational behind that?
If you multiply the current rents in this area, you get a number that is WAY lower than anything in this area. Like 50% reduction from todays prices.
DWC, it's just a common sense generalization. I'm not saying that values will drop 50% further, but they could.
If looking for a reasonable investment that will pencil out, without needing appreciation to have it make sense, it's just a rough number.
There are plenty of places in the country where you can buy for closer to 100X monthly rent, esp multi units.
If I buy as an investment, I would like to see a return on my investment, not something that I need to support every month with additional cash.
It's also a generalization that if monthly rent is less than the price of the property divided by 150, you are better off renting, financially speaking.
To me, the reasonable rent in an area determines the true value of the property; the price of the property doesn't determine the reasonable rent.
There is a big difference between price and value.
ParticipantPIZ,,
Info sent. Thanks.ParticipantPIZ,,
Info sent. Thanks.ParticipantPIZ,,
Info sent. Thanks.ParticipantPIZ,,
Info sent. Thanks.ParticipantPIZ,,
Info sent. Thanks.ParticipantJumby,
Of course it is a benefit, I didn’t say that it wasn’t.Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.
When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.
Feel free to factor in if you want, I prefer it to be a bonus.
Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.
ParticipantJumby,
Of course it is a benefit, I didn’t say that it wasn’t.Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.
When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.
Feel free to factor in if you want, I prefer it to be a bonus.
Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.
ParticipantJumby,
Of course it is a benefit, I didn’t say that it wasn’t.Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.
When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.
Feel free to factor in if you want, I prefer it to be a bonus.
Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.
ParticipantJumby,
Of course it is a benefit, I didn’t say that it wasn’t.Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.
When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.
Feel free to factor in if you want, I prefer it to be a bonus.
Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.
ParticipantJumby,
Of course it is a benefit, I didn’t say that it wasn’t.Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.
When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.
Feel free to factor in if you want, I prefer it to be a bonus.
Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.
ParticipantWake me up if the listing price gets to $200K, and I might put an offer in at $187K.
If someone else wants to buy it before then, just let me sleep. No need to fight with anyone over it. They can have it.
In the late 80’s there were plenty of local properties that were available for a similar multiple. It was no big deal, and being a landlord was not as popular as it is today.
Getting financing was the issue, not the house price.
It needs to get back to that reality.ParticipantWake me up if the listing price gets to $200K, and I might put an offer in at $187K.
If someone else wants to buy it before then, just let me sleep. No need to fight with anyone over it. They can have it.
In the late 80’s there were plenty of local properties that were available for a similar multiple. It was no big deal, and being a landlord was not as popular as it is today.
Getting financing was the issue, not the house price.
It needs to get back to that reality.ParticipantWake me up if the listing price gets to $200K, and I might put an offer in at $187K.
If someone else wants to buy it before then, just let me sleep. No need to fight with anyone over it. They can have it.
In the late 80’s there were plenty of local properties that were available for a similar multiple. It was no big deal, and being a landlord was not as popular as it is today.
Getting financing was the issue, not the house price.
It needs to get back to that reality. -
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