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spdrun
ParticipantI drive a lot even when not commuting Plus no-one (besides spdrun maybe) wants to pay more for gas.
No one does, but one has to admit that they keep traffic and gratuitous guzzler ownership under control.
Participantrockingtime – your calculations imply under 3% cap rate at $4000/mo. This is very low even in the current market and especially low for a buy a few years ago. It’s not the market. It’s a sucker buying an inappropriate rental property.
ParticipantTaxes 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.
ParticipantTaxes are likely to be $1100/mo.
HOA at least $100/mo
Insurance/Mello Roos ???Even if it rents for $4000/mo, net will be under $2800/mo. That’s ~3% return. Stinks for property, even in current environment.
Participant^^^ Touche.
ParticipantWhat if the investor was also a hard-working blue-collar worker? I know a few who started as electricians and tree-cutters.
ParticipantUnfortunately, the tenant wasn’t able to get a loan so the owner sold to another investor. Sad.
Happy for the investor. I don’t think the average Joe or Jane off the street necessarily needs to own a home.
ParticipantI’m not sure if that’s true. There was a 4 year period now, and a precipitous drop in pricing after the early 1980s. I’d say at least 8-10 years. So maybe 1/3 of the time equal, 1/3 of the time more expensive, 1/3 of the time less.
ParticipantBetter that they eat cake … I mean rent for life.
ParticipantRenting by the room might fall foul of the mini-dorm law. I’m not saying to be a goody two-shoes, but don’t get caught 🙂
ParticipantLack of pretentious startup glasswholes is a net positive.
Gas should be expensive. Fecking idiots who choose to drive four-wheeled mastodons to the mall should pay. In fact, they don’t pay enough.
ParticipantEverything here (except gas and housing, maybe) is cheaper than in the Northeast. Gas doesn’t matter so much. Perfect climate for electric cars and motorcycles! And when you factor in HVAC costs, taxes, comparative HOA fees, housing doesn’t look so bad either.
ParticipantIncreases in asking prices are usually slow to nonexistent after May, and sales tend to slow down by mid July. People often buy for a summertime move, meaning they’re looking to buy now and close in early summer.
ParticipantIt’s peak season now. Peak pricing is typically reached NOW through mid May, with a plateau in summer. Besides, those pending units will likely record in mid May to early June.
Late July to early August are actually slow months. MM might be doing fine. Other areas have more inventory than last year, and they’re not horrible areas.
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