Author Topic: Silly, sentimental want-to-buy  (Read 1600 times)

Neustache

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Silly, sentimental want-to-buy
« on: November 21, 2014, 11:42:35 AM »
I don't have the money for it, but just saw the 4-plex my husband and I first rented after we were married list on realtor.com. 

All units are 2 bed/1.5 bath and the asking price is 104K. 

12 years ago we rented at $475 a month, so it's possible rents would bring in....I don't know....24K a year? 

I can't even evaluate this logically...some sentimental hormone in me says "I should buy it!"

Again...I don't have the money, and it's mostly sentiment talking.  All the sentiment broke my brain and I can't even tell if this would be a good purchase for someone else.  LOL. 

dios.del.sol

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Re: Silly, sentimental want-to-buy
« Reply #1 on: November 21, 2014, 12:47:01 PM »
All units are 2 bed/1.5 bath and the asking price is 104K. 

12 years ago we rented at $475 a month, so it's possible rents would bring in....I don't know....24K a year? 

Price-to-rent ratio of 4.3. Paying all cash, 50% rule, $12k net income on an investment of $104k gives an 11% return. Yeah... sound good at first glance.

Coming from Los Angeles, deals like this make we want to barf. A unit bringing in $24k a year can easily go for more than $500k.

Neustache

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Re: Silly, sentimental want-to-buy
« Reply #2 on: November 21, 2014, 12:53:16 PM »
Full disclosure:  This is a suburb of KC and while I like the school district, it's not a sought after district in the area. 


So whoever buys this would be dealing with lower income folks who aren't trying to move to Lee's Summit, or...people like my husband and I who have always lived in this area and like the low COL. 


gimp

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Re: Silly, sentimental want-to-buy
« Reply #3 on: November 22, 2014, 04:53:47 PM »
I would love to take advantage of a deal like that, assuming it's not falling apart and rotted through and missing all the copper... a SFR around here is usually $500k+.