Quote:
|
Originally Posted by Ed O
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. |
that's a pretty interesting way to look at it. even in this overheated real estate market it isn't always easy to make huge returns on your investment. that's why I can't wait to finally be out of real estate investing in a week (when my only rental property closes).
history has shown that stocks outperform real estate on a larger time scale, and they're a hell of a lot less work.
I'm one week from being rid of the Shawn Kemp of rental properties, and I just got a call from a tenant whining about a toilet that's leaking water on the floor.