Friday, February 12, 2010

A Little Off The Top

Why rent when you can buy? Then again why not buy and rent it out? Here's a tri-level town home in the new Riverpark complex. Let's run the numbers. Actually that's old hat. Let's run just one number; carrying cost ex-mortgage.

614 Green River St, Oxnard, CA 93036
3/ 2.5/1,519/$188
YEAR BUILT: 2008 MLS#: 90013806

Great tri level condo available in the gorgeous RiverPark development. The home features granite counter tops with Stainless Steel Appliances. The home will include the washer, dryer, softwater system, alarm and refrigerator. The home includes a third level with a huge room and walk in closet. Walking distance to parks and schools.

Now the important numbers:
Homeowners Association Dues: $211
Tax (2008) $5,384

Got that? $660/mo for the privilege of ownership.
You might get $1300/mo renting this out. That leaves $640 for debt service. That sets the value at $143,000. Asking price? $285,900. It's almost as if they were working the numbers backwards except multiplying by 2.

8 comments:

wagga said...

In the last post, you had your first typo of the year - last item, sheep, was spelled cows.

sm_landlord said...

It makes you wonder if the homebuilders have learned something from this. As in - HOAs kill the value when you're selling shoeboxes to Joe Howmuchamonth.

...Nah...

wagga said...

Just off the the tube (Olympic Department):

"Canada has fewer people than California - but a much stronger & more vibrant economy..."

tj and the bear said...

Where's the girl in the photo?

Jean ValJean said...

You silly bear...
she's right here:

http://3.bp.blogspot.com/_zqzPMzXNGso/S3Q4MDQgh6I/AAAAAAAAD68/IwG2SKrpOoo/s1600-h/youngcop.jpg

Lex said...

The problem isn't the carrying costs. The problem is that the Walkscore is only 29!

Project obviously needs more Smart Growth -- a bodega every three blocks should easily get the score over 80.

Rob Dawg said...

For some strange reason all the small businesses and big stores haven't moved in on schedule. Whole Foods and REI. I am so looking forward to REI. My membership dates back to the 70s.

chalex said...

Always with the "granite counter tops and stainless steel appliances"!

I was helping a friend look at apartments recently, and almost every one had the above. He'd gladly pay $100/mo less and live without the fancy upgrades.