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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 59099  
Subject: Re: CT TeaBagger says home prices down 20% more Date: 1/6/2011 10:33 PM
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I did miss it. That's a PTR ratio of 16.1. That means goofy's gross return on investment for his condo is 6.1% For me, that means rent it; not own it. I'd sell the thing. A 6% gross return on something as illiquid as RE is just not worth the risk.

Do you, like, not read my posts?

I made a $10,000 investment, which is now worth $550,000.

The condo is severely cash flow positive, to the tune of $24,000 a year - yes, including expenses. That's NET, not gross. $24,000 net. See?

For me, that means rent it; not own it.

You will be shocked to hear that the rent, way back when, was around $800/mo. Now it is $2850/mo. I have every expectation that in a few years it will be $3500/mo. If you are "renting", then you are the one being taken. If you own it, as I do, you are getting both cash flow and appreciation.

A 6% gross return on something as illiquid as RE is just not worth the risk.

This is possibly the worst analysis I have ever seen on this board or any other. If I could repeat this investment a hundred times, I would do it.

You, apparently, would prefer to pay me the rent. That's OK with me. I need people like you to keep me in the style to which I have become accustomed.
 
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