Comments on: When will townhomes cashflow?

By: kei

kei — Thu, 17 Jul 2008 22:27:38 +0000

Very good point. Some renters buy their property through state / city sponsorered first time home buyers program which restricts them from renting. If caught, you will have to move out immediately.

By: Arcadia Lost

Arcadia Lost — Wed, 16 Jul 2008 17:50:39 +0000

We’ve kept an eye on the rental market for nice 2 BR apts/condos in the Arc/TC area for my in-laws. Some rents for 2 and 3 BR houses on Craiglist are getting attractive. However, I’m concerned about “owners” simply pocketing the rent/security deposit, etc. and until the property is foreclosed.

Does anyone know if this is a growing problem for renters in this area, and are there ways to protect against this without resorting to suing the owner later for unreturned deposits?

By: missedthebubble

missedthebubble — Wed, 16 Jul 2008 17:20:06 +0000

My two cents…..

This place is worth between $200 and $250k… Because even the $220k price is in the bubble run up, and no one in their right mind would dump $80k, and pay that note a month for this dump.

By: TheArcadian

TheArcadian — Wed, 16 Jul 2008 17:01:07 +0000

george8,

This property actually sold for $220 just 6 years ago. So based on your analysis, $240-320k seems like a reasonable range for this townhome.

Straight line appreciation from 2002 gives us these values:

3% $262,691 ($199/sf)
4% $278,370 ($211/sf)
5% $294,821 ($224/sf)
6% $312,074 ($237/sf)

Currently listing for $415,000 ($315/sf). LAUGHABLE.

By: george8

george8 — Wed, 16 Jul 2008 13:54:31 +0000

Assuming this unit can rent for $2000/month, GRM160 makes it $320k for an owner occupant. It will be lower to, perhaps, $240k (GRM120)for an investor to be interested in this though, since no appreciation potential in the next few years.