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Nesgroup address: misc.invest.real-estate - Date & Time for the message: 16 May 2005 16:42:40 -0700
/ Author of the message: billmiami2@netscape.net |
Title of the message: |
Economics of buying rental properties in current market
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Text of the message: |
My fiancee and I have been examining the real estate market here in South Florida. While we understand that the market is inflated, we were interested to see if it would make sense to purchase a rental property with 2 to perhaps 4 units. Unfortunately, each time we calculate the prospective cash flows and return on properties offered for sale, we find ourselves swimming in red ink. In many cases, the rents can't even cover the mortgage at the prices asked, let alone any reserve for repairs and maintenance, taxes, insurance and other expenses. When we calculate a break-even price, this is often vastly different from the price posted, sometimes by a margin of a quarter to a third of the asking price. Yet people are buying these properties at these prices, sometimes lining up at the door to outbid one another. What are these people thinking? Is there something important we're missing in our analysis? |
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Estaplace.com is one the Ceglia Giovanni projects, started on 20 July 2005, and online since 20 August as a real estate platform for listings, mainly operating on the Italian and American/English market in the Internet, Estaplace would like to become the point of referiment for home sellers and home buyers, a site where private owners or real estate agencies can have the possibility to show their offers to the world. Estaplace.com is only one of the Giovanni Ceglia's sites. Everyday Giovanni Ceglia works to improve new Internet tools and services for online marketing and business. Estaplace.com will become the biggest portal for real estate business and investments online.