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Originally Posted by Masbee
They buy it for $875k, claim to invest $500k restoring the place and, total $1.37million now it is worth $2.35million???
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I agree with you about it being only worth what someone will pay for it, but that goes to the assertion that there aren't many wealthy purchasers in the Portland area.
As for whether it's "pie in the sky": I have little notion of the Portland real estate market, but it doesn't seem to be a ridiculous price to me.
If they purchased the house for $875k in 1999 and invested $100k in restoring it each of the years 1999, 2000, 2001, 2002, 2003 and 2004, the average rate of return would have to be just over 9% to get to $2.35m... certainly better than inflation, but not ridiculous.
Just something to chew on.
Ed O.