How Much Is This House Worth? (1 Viewer)

[chet]

All you know is that:

1) it rents for $4,200 / month and there was lots of interest when it was available over the summer; and

2) annual taxes are about $11k.

 

[BroadwayG]

25 billion

 

[Ignoramus]

Does it rent for $4200 year-round, or just seasonally?

 

[CurlyNight]

Sounds like a 2 million $ home in the bay area, depending on which city it's in.

 

[BobbyLayne]

Between $403,200 and $1,108,800 depending on location.

 

[Rayderr]

Taxes would put that house around $600k here in the Columbus Ohio region.

 

[Dentist]

so at full capacity it generates about 50K a year - 11K = 39K

Not sure what type of other expenses you'd have associated with it other than insurance and upkeep... but let's assign those at another 9K.

So you're talking about an investment that generates 30K a year.

Assuming you'd like to make about 8-10% on your money, i'd be thinking in the 300-330K a year price tag

 

[Officer Pete Malloy]

It's worth $4200 a month.

 

[Dentist]

It's worth $4200 a month.

you'd lose money thinking like that

 

[fatguyinalittlecoat]

i'd be thinking in the 300-330K a year price tag

Huh? He's asking how much the house is worth.

Just based on the rent I'd guess $1.5 million or something.

 

[Sinn Fein]

All you know is that:

1) it rents for $4,200 / month and there was lots of interest when it was available over the summer; and

2) annual taxes are about $11k.

You know what would make this easier - the tax rate.

that would at least give you the tax assessor's value, which is generally below market value.

If taxes are 1%, then it puts the assessed value at $1.1M, and market value at about $1.3-1.5 give or take a few bucks.

 

[Chemical X]

that rent and those taxes scream big city........going in the 775k range.

 

[Harris]

What are the expenses to get to your annual NOI? Also, what market? Will help to get an appropriate cap rate to determine the value.

ETA: This would only be relevant if you plan to keep renting it out and you're selling to someone who wants to keep renting it out.

 

[Grace Under Pressure]

If you don't know the location, you don't know.

 

[Brony]

I was told that there would be no math in the FFA today.

 

[George Jefferson Airplane]

$23k

 

[chet]

that rent and those taxes scream big city........going in the 775k range.

 

[chet]

Between $403,200 and $1,108,800 depending on location.

Good start.

 

[cdubz]

Using long-term national averages on P/E, $806,400.

 

[chet]

If you don't know the location, you don't know.

X

 

[BobbyLayne]

Between $403,200 and $1,108,800 depending on location.

Good start.

$756K average amirite

 

[⚡DEADHEAD⚡]

All you know is that:

1) it rents for $4,200 / month and there was lots of interest when it was available over the summer; and

2) annual taxes are about $11k.

You know what would make this easier - the tax rate.

that would at least give you the tax assessor's value, which is generally below market value.

If taxes are 1%, then it puts the assessed value at $1.1M, and market value at about $1.3-1.5 give or take a few bucks.

This is good thinking.

My guess: $1.2 million.

Of course in California, property tax increases are limited by legislation so this tax rate could be for a $5 million home, but that wouldn't rent for $4,200/month.

 

[George Jefferson Airplane]

$24k

 

[The Z Machine]

I'd say about $800k.

 

[El Floppo]

that rent and those taxes scream big city........going in the 775k range.

so it's a small studio apt?

 

[chet]

Between $403,200 and $1,108,800 depending on location.

Good start.

$756K average amirite

You're proably within $50k or so.

 

[chet]

that rent and those taxes scream big city........going in the 775k range.

so it's a small studio apt?

It's not NYC, friend.

 

[George Jefferson Airplane]

$25k

 

[BobbyLayne]

In down markets 5-6 times rent rolls, 8-10 in up marekts.

NYC (Manhattan & Brooklyn), it's 22-24 times rent roll. Which might explain why anything not landmarked gets demolished to build max FAR. Developers often buy air rights (yep, that's a thing here) from neighboring properties to acquire more FAR. Sometimes you see inverted designs which are due primarily to air rights restrictions at lower heights.

example

 

[Sebowski]

In down markets 5-6 times rent rolls, 8-10 in up marekts.

NYC (Manhattan & Brooklyn), it's 22-24 times rent roll. Which might explain why anything not landmarked gets demolished to build max FAR. Developers often buy air rights (yep, that's a thing here) from neighboring properties to acquire more FAR. Sometimes you see inverted designs which are due primarily to air rights restrictions at lower heights.

example

NYC is a ####### a crazy place. A fantastically wonderful and crazy place.

 

[DA RAIDERS]

1.1-1.5 where I live.

 

[MikeIke]

I'll give you six dollars for it

 

[timschochet]

If it was in California, the taxes would be meaningless due to Prop 13. We never use taxes to determine real value here.

 

[Abraham]

If it was in California, the taxes would be meaningless due to Prop 13. We never use taxes to determine real value here.

Or player salary either.

 

[Koya]

In down markets 5-6 times rent rolls, 8-10 in up marekts.

NYC (Manhattan & Brooklyn), it's 22-24 times rent roll. Which might explain why anything not landmarked gets demolished to build max FAR. Developers often buy air rights (yep, that's a thing here) from neighboring properties to acquire more FAR. Sometimes you see inverted designs which are due primarily to air rights restrictions at lower heights.

example

When you say it's 22-24 times rent roll, exactly what do you mean? Trying to convert that into a cap rate, which, in NYC is miniscule (easily sub 4%, and closer to 3% for resi product).

If you can get a value of 20+ times your rent, you rent is way to low.

 

[mr roboto]

Without looking I'd say 800k. I'm renting out a 375,000 home for 2,300.

 

[joffer]

I have no idea

 

[BobbyLayne]

In down markets 5-6 times rent rolls, 8-10 in up marekts.

NYC (Manhattan & Brooklyn), it's 22-24 times rent roll. Which might explain why anything not landmarked gets demolished to build max FAR. Developers often buy air rights (yep, that's a thing here) from neighboring properties to acquire more FAR. Sometimes you see inverted designs which are due primarily to air rights restrictions at lower heights.

example

When you say it's 22-24 times rent roll, exactly what do you mean? Trying to convert that into a cap rate, which, in NYC is miniscule (easily sub 4%, and closer to 3% for resi product).

If you can get a value of 20+ times your rent, you rent is way to low.

Annual rent roll x 24 = purchase price.

When I moved here 15 years ago Brooklyn multi-families were trading at 14-16 times annual rent roll. I thought that was insane and unsustainable.

You cannot find a row house property in brownstone Brooklyn or Manhattan in which the cap rate will make a lick of sense.

Solution? Demo if its not landmarked. If it is, convert to single family. It makes no sense to continue as a 3 or 4 family, scarcely worth it to convert to co-op or condo.

 

[The Z Machine]

In down markets 5-6 times rent rolls, 8-10 in up marekts.

NYC (Manhattan & Brooklyn), it's 22-24 times rent roll. Which might explain why anything not landmarked gets demolished to build max FAR. Developers often buy air rights (yep, that's a thing here) from neighboring properties to acquire more FAR. Sometimes you see inverted designs which are due primarily to air rights restrictions at lower heights.

example

When you say it's 22-24 times rent roll, exactly what do you mean? Trying to convert that into a cap rate, which, in NYC is miniscule (easily sub 4%, and closer to 3% for resi product).

If you can get a value of 20+ times your rent, you rent is way to low.

Annual rent roll x 24 = purchase price.

When I moved here 15 years ago Brooklyn multi-families were trading at 14-16 times annual rent roll. I thought that was insane and unsustainable.

You cannot find a row house property in brownstone Brooklyn or Manhattan in which the cap rate will make a lick of sense.

Solution? Demo if its not landmarked. If it is, convert to single family. It makes no sense to continue as a 3 or 4 family, scarcely worth it to convert to co-op or condo.

Does this mean that the population density is actually going down?

 

[Ditkaless Wonders]

Where I live that is a $750,000 house, likely in a covenant controlled community with HOA dues of $600 per year for grounds and pool, or $1500 dues in a community with the additional amenities of a golf course and tennis courts.

 

[Koya]

In down markets 5-6 times rent rolls, 8-10 in up marekts.

NYC (Manhattan & Brooklyn), it's 22-24 times rent roll. Which might explain why anything not landmarked gets demolished to build max FAR. Developers often buy air rights (yep, that's a thing here) from neighboring properties to acquire more FAR. Sometimes you see inverted designs which are due primarily to air rights restrictions at lower heights.

example

When you say it's 22-24 times rent roll, exactly what do you mean? Trying to convert that into a cap rate, which, in NYC is miniscule (easily sub 4%, and closer to 3% for resi product).

If you can get a value of 20+ times your rent, you rent is way to low.

Annual rent roll x 24 = purchase price.

When I moved here 15 years ago Brooklyn multi-families were trading at 14-16 times annual rent roll. I thought that was insane and unsustainable.

You cannot find a row house property in brownstone Brooklyn or Manhattan in which the cap rate will make a lick of sense.

Solution? Demo if its not landmarked. If it is, convert to single family. It makes no sense to continue as a 3 or 4 family, scarcely worth it to convert to co-op or condo.

Got ya. I'm talking more institutional level and obviously town home densities the land is worth so much more in proportion.

 

[D in the D]

800 racks. give or take.

 

[Nugget]

1.2M

looked at house that was renting for $3300 month, comp sales were around 900K.

 

[BobbyLayne]

In down markets 5-6 times rent rolls, 8-10 in up marekts.

NYC (Manhattan & Brooklyn), it's 22-24 times rent roll. Which might explain why anything not landmarked gets demolished to build max FAR. Developers often buy air rights (yep, that's a thing here) from neighboring properties to acquire more FAR. Sometimes you see inverted designs which are due primarily to air rights restrictions at lower heights.

example

When you say it's 22-24 times rent roll, exactly what do you mean? Trying to convert that into a cap rate, which, in NYC is miniscule (easily sub 4%, and closer to 3% for resi product).

If you can get a value of 20+ times your rent, you rent is way to low.

Annual rent roll x 24 = purchase price.

When I moved here 15 years ago Brooklyn multi-families were trading at 14-16 times annual rent roll. I thought that was insane and unsustainable.

You cannot find a row house property in brownstone Brooklyn or Manhattan in which the cap rate will make a lick of sense.

Solution? Demo if its not landmarked. If it is, convert to single family. It makes no sense to continue as a 3 or 4 family, scarcely worth it to convert to co-op or condo.

Got ya. I'm talking more institutional level and obviously town home densities the land is worth so much more in proportion.

Here's one I walk by every day after picking my daughter up:

121 Charles St

It's an early 1800s farmhouse. Even given the insane TH prices of the West Village, it shouldn't command more than $5-6M for the structure. But it's a 5K sq ft lot, and since it is not landmarked, open season.

They're asking $20M. That only makes since if you raze it and max out the FAR.

ASIDE - not landmarked because it was moved there almost 50 years ago from the UES, when the owners were trying to save it from bering destroyed as part of an urban renewal project.

 

[VA703]

1.1 mil

 

[Ignoramus]

ONE DOLLAR!!!

 

[cstu]

Depends on what you cap rate you want to use but using 5% it's around $800k (assuming not a lot of other expenses).

 

[cstu]

1.2M

looked at house that was renting for $3300 month, comp sales were around 900K.

That's a cheap rental.

 

[Nugget]

1.2M

looked at house that was renting for $3300 month, comp sales were around 900K.

That's a cheap rental.

It was only about 2200 square feet. Orange County is the suck.

 

[Fennis]

25 billion

$25,000,000,001