Yesterday, I tried to get my Agent ( not the listing Agent ) to present an offer of 83.5% of the listing price. My Agent told me that "the Seller would probably ignore it and not even counter. I would be negotiating with myself". The Agent stop short of refusing to present the offer but made it very clear that I would be wasting my time and the Agent's. The home is South of 30-A in an area where the Sales price versus List Price ratio is in the 88-90% range ( I think ). I've worked long and hard with this Agent to find this property and have a good working relationship, but frankly I'm flabbergasted at this attitude.
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78
Beach Fanatic
Rule of thumb for cash flow on a vacation rental investment would be a factor of .10
If you purchased a condo for $250,000 and the rental income is $25,000 py, a 10% return is a good starting point when investigating an investment purchase. Haven't seen anything like that in years, but we may be getting back to that point in history.
If you purchased a condo for $250,000 and the rental income is $25,000 py, a 10% return is a good starting point when investigating an investment purchase. Haven't seen anything like that in years, but we may be getting back to that point in history.
directionally challenged
Cork, is that based on ECAR or Walton? Just curious.
Yes, I extract the data myself from ECAR and plot it. For that reason, it doesn't include FSBO's but I think it's better than the county info and of course more up to date. What I did with Seacrest and Rosemary is remove any sale that might skew the data in a misleading way. For instance, there was a carriage house only sitting on a 2nd tier lot in Rosemary that sold. The sq. ft price was way too high because the bulk of the value was in the lot so I didn't use that in the data. I am using REO's and short sales though because they are indicative of the current value.
While it's true that researching data never tells the whole story, Aabsolute, I've found it very valuable. For instance, I picked up the first scary drop in sales back in April of 2005 I believe and then there was a second "telling" drop in July of 2005. List prices continued the acceleration through Fall of 2005 and people kept paying it throught at least fall or winter of 2005. While few expected the magnitude of the decelleration, the signs were there and a lot of people got caught during that time. Data merely supports good judgement and sound investment practices such as yours for sure.
Beach Fanatic
Rule of thumb for cash flow on a vacation rental investment would be a factor of .10
If you purchased a condo for $250,000 and the rental income is $25,000 py, a 10% return is a good starting point when investigating an investment purchase. Haven't seen anything like that in years, but we may be getting back to that point in history.
Many things are getting back to those levels.
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