 $80k / unit (by bob [NY]) Dec 30, 2010 10:58 AM
 $80k / unit (by LL [AZ]) Dec 30, 2010 11:50 AM
$80k / unit (by in [IN]) Dec 30, 2010 1:31 PM
$80k / unit (by 574-Brad [IN]) Dec 30, 2010 1:51 PM
$80k / unit (by Virden [OH]) Dec 30, 2010 9:38 PM
$80k / unit (by Dan [WI]) Dec 31, 2010 9:11 AM
$80k / unit (by bob [NY]) Posted on: Dec 30, 2010 10:58 AM
Message:
State Specific Question About: NEW YORK (NY)
Hi,
I am looking at a 10 unit in suburban upstste NY . It is priced at $800k and has a cap rate of 7% +
I found it was sold 6 yrs ago for $439 and 3 years ago for $600k. I need opinions on the ever increasing prices of rentals ? Thanks BOB --74.110.xx.xxx |
$80k / unit (by LL [AZ]) Posted on: Dec 30, 2010 11:50 AM
Message:
How did you come up with that cap rate? And are you talking cap rate or net income? 7% is too low for me, I prefer closer to 15%.
Sounds like you have a market that is unusual for the rest of the country, which has generally seen rates move from $800K to $400K in the past several years, this appears to be appreciating at 25% in 3 years. I'd move carefully as future prospects for appreciation might be limited.
What are your rents? At 80K per unit you need to get rents of around $1,000 a month or better. My rough rule of thumb is $500 rent per $30,000 invested. If you are getting say $1200+ in rents this might be a viable purchase.
If the property is well located, it can be worth paying a premium. But generally you will earn a better rate of return buying a lower priced property with more units. Such as buying 40 units at 20K per door that rent for $400 per month. --76.87.xx.xx |
$80k / unit (by in [IN]) Posted on: Dec 30, 2010 1:31 PM
Message:
My rough rule of thumb is $500 rent per $30,000 invested.
Cool math, never though of it that way before...appreciate the RTOI thought.. --67.163.xx.xxx |
$80k / unit (by 574-Brad [IN]) Posted on: Dec 30, 2010 1:51 PM
Message:
I use the same approach. My "rough" rule of thumb is monthly rent of 2% of cost basis (purchase price + rehab costs). I will go a little less if it is in a desirable area, I need higher monthly rent% if its not in such a great area.
What do these units rent for? What utilities would you pay? What are yearly taxes? Is this a newer building in really good shape or an old dump?
Just looking at your sale price history, I think that is way too much money. Almost sounds like an investor who doesn't necessarily care if they sell it, but "if I could sell it for that..." Which isn't good for you. I see it a lot around here. --66.228.xxx.xxx |
$80k / unit (by Virden [OH]) Posted on: Dec 30, 2010 9:38 PM
Message:
You need to learn the sinking value of property these days, do a lot of math and practice saying "next". --76.241.xxx.xx |
$80k / unit (by Dan [WI]) Posted on: Dec 31, 2010 9:11 AM
Message:
I need to move to Indiana...or Alabama. --173.30.xxx.xx |
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