U would have to calculate in the the principal and how long he intended to keep it vs what the rise in value. Plenty of real estate deal ends up looking better in the long run, but you cant count on it when doing the initial estimation.
Quote from: Ben Hogan on March 05, 2017, 07:43:39 PMU would have to calculate in the the principal and how long he intended to keep it vs what the rise in value. Plenty of real estate deal ends up looking better in the long run, but you cant count on it when doing the initial estimation.Agreed and of course that's the tricky part is no one knows what will happen with the property value in the future. I'm still curious of people's thoughts all things being equal and "typical" property value appreciation.
IIRC, he spent $400,000 on it and rented it out for $2,400 / month. The way I model rentals this would be a bad deal but curious of the perspective from the smart people here.
Agreed and of course that's the tricky part is no one knows what will happen with the property value in the future. I'm still curious of people's thoughts all things being equal and "typical" property value appreciation.