How Much Is This House Worth? (1 Viewer)

[Random]

I get $4200/mo in rent for about $150K.

 

[cstu]

I get $4200/mo in rent for about $150K.

I hope you are buying up every house in town.

 

[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

Guess i was wrong.. so since Chet says it's worth 750-800 i guess you're only generating about 5% on your money by purchasing it... not that great IMO

 

[mr roboto]

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

Guess i was wrong.. so since Chet says it's worth 750-800 i guess you're only generating about 5% on your money by purchasing it... not that great IMO

Except in theory the asset appreciates over time. While u generate income.

 

[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

Guess i was wrong.. so since Chet says it's worth 750-800 i guess you're only generating about 5% on your money by purchasing it... not that great IMO

Except in theory the asset appreciates over time. While u generate income.

true, but it's an eggs in one basket type of thing... as opposed to just buying a REIT or REIT fund and taking the % that fund yields with your money.

 

[mr roboto]

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

Guess i was wrong.. so since Chet says it's worth 750-800 i guess you're only generating about 5% on your money by purchasing it... not that great IMO

Except in theory the asset appreciates over time. While u generate income.

true, but it's an eggs in one basket type of thing... as opposed to just buying a REIT or REIT fund and taking the % that fund yields with your money.

If you think this price point is all of Chet's eggs in one basket...

 

[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

Guess i was wrong.. so since Chet says it's worth 750-800 i guess you're only generating about 5% on your money by purchasing it... not that great IMO

Except in theory the asset appreciates over time. While u generate income.

true, but it's an eggs in one basket type of thing... as opposed to just buying a REIT or REIT fund and taking the % that fund yields with your money.

If you think this price point is all of Chet's eggs in one basket...

no, i didn't mean that... i meant that this particular 800,000 bucks was all in one basket.

As opposed to like owning a REIT fund like the ETF REM or MORT that own several REITS.

I'm not sure what type of loot chet has... but let's say he's worth 10 million dollars.... that's putting 8% of your portfolio into 1 stock (house).. that seems like a lot.

now, if he's worth 20 million or more, then putting just 4% into one thing.. I guess i could get behind that.

 

[mr roboto]

^^^ I gotcha. I don't think a 750k house is really a primary investment for most single investors. But say you own the home with 30% equity, in an appreciating market with low interest rates and a high rental demand (otherwise known as right now). You want to move to a different 750k house. You have plenty of money invested. You could sell the house or rent it out, cover the low interest mortgage, make some profit and watch it appreciate.

A lot of working class investors have built wealth with investment properties. Not 750k properties mind you. But if you're plugging cash into IRA/401k and you've got extra loot getting an investment prop or 2 can snowball into a nice asset portfolio. Hell, teachers, nurses, plumbers have done this and grown their wealth this way for generations.

 

[Zegras11]

1.05 mil

 

[fantasycurse42]

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

I was at this whole in the wall burlesque bar across the street from there like two weeks back. 105 Norfolk, I've seen that building a bunch of times, but wanted the address to look online. LES 1BR for $1.2, unreal!Put me in the $800k range for Chet's question, although around here maybe even a little higher like $900k.

ETA: Nurse Bettie

 

[SIDA!]

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.

Well, I would only buy for cash flow..not appreciation.

I would assume gross income of

$50,4000 - 40% for all operating expenses including taxes. That leaves a net operating income of $30,240.

A 10% cap would be a purchase price of roughly $302,000. But I would bet $302,000 that this property is fetching more than that. I won't even get into cash on cash return because I am pretty sure this property is going to be astronomically expensive.

 

[rascal]

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.

350k

 

[Raider Nation]

$26k.

 

[Harry Manback]

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.

$550,000

 

[Buck Bradcanon]

Why don't you just TELL me the name of the movie you'd like to see? /Kramer