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Cap rates...

Started by Rhino86
about 17 years ago
Posts: 4925
Member since: Sep 2006
Discussion about
Who wouldn't want to rent this for $7,500 and earn 3.6% cash on cash, especially given the property taxes will go up every two years? Sign me up! That is even if I believe that they can get the $7,500! http://www.streeteasy.com/nyc/sale/384734-condo-130-west-19th-street-chelsea-new-york
Response by trevorF
about 17 years ago
Posts: 58
Member since: Mar 2008

you didn't state your point in a very clear fashion, but i understand what you're trying to say. yes rhino, prices are experiencing downward pressure.

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Response by Rhino86
about 17 years ago
Posts: 4925
Member since: Sep 2006

No, my point is the return on an investment in this property, even if the rent is attainable, is pitifully low. Worse still, is the tax burden will ratchet up over time.

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Response by mlsquared
about 17 years ago
Posts: 10
Member since: Sep 2008

Some folks are desparate for places to launder their money - check out this recent sale:

http://www.streeteasy.com/nyc/sale/349045-condo-640-west-end-avenue-upper-west-side-new-york

The buyer's are now (and unsuccessfully) trying to lease it for $3500/mo - even if they could...it's still like a 2% cap rate. Crazy!

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