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Who and why buys places like this

Started by rs13
almost 8 years ago
Posts: 1
Member since: Jan 2013
Discussion about
https://streeteasy.com/building/the-paladin/1205 I gotta wonder. The carrying cost of this studio apartment is $4,000 while the ad clearly states it is rented for $2,500. How does this make sense as EITHER investment or owner-occupied?? Even factoring in rent increases it would take 10 years of consecutive 5% increases to be cash flow break even. Am i missing something here, do people buy places priced like this and if so what is the thinking process/wager behind it?
Response by Fiddlesticks
almost 8 years ago
Posts: 6
Member since: Jan 2018

I think you misread the ad (or it's been updated since you posted). The taxes are $572/mo. and common charges are $493/mo. The $4,064 is just the estimated mortgage payment.

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