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When was this aired? I would like to find and watch this episode
I tried to find it (because I wanted to see why I thought they said it was a 1 bedroom) but I was not able to get it back from my HISTORY (on DVR) becasue it was deleted 3 days old ago, not retreibable. I searched the Internet and even the WATCH INSTANTLY for streaming from Netflix. NOTHING.
Except that I found it was Season 4, Episode 12, called SATISFACTION GUARANTEED.
Maybe they'll replay it in some kind of marathon?
Thanks for the link jad,
I searched high and low but could not find a replay.
Yes, I see the apartment is 2 bedrooms and larger than I first thought.
But I still maintain that if the rent does not even cover the mortgage on $775,000, not to mention condo fees, taxes, however abated, it is NOT an investment property. Investments are for making money with a positive cash flow not for losing it every month.
Anyone thinking costs are lowered by paying cash doesn't understand the very real cost of lost opportunity.
I dislike that the realtor said several times "she rented the 2 bedroom apartment" with no mention of HOW MUCH. The whole point of an investment property is "how much."
there is very little in the way of apartments that will give a positive cash flow in the early years. unless its a fixer upper or its being dumped .
like any investment thats a long term investment that investment has to usually pay its dues for a while.
the least profitable apartment i ever owned was the kew gardens one and although it took almost 10 years to turn positive without counting depreciation its a cash machine today. it spins off almost 1k a month and increases yearly.
Thanks for the link jad,
I searched high and low but could not find a replay.
Yes, I see the apartment is 2 bedrooms and larger than I first thought.
But I still maintain that if the rent does not even cover the mortgage on $775,000, not to mention condo fees, taxes, however abated, it is NOT an investment property. Investments are for making money with a positive cash flow not for losing it every month.
Anyone thinking costs are lowered by paying cash doesn't understand the very real cost of lost opportunity.
I dislike that the realtor said several times "she rented the 2 bedroom apartment" with no mention of HOW MUCH. The whole point of an investment property is "how much."
It was rented for $3,900. The realtor says so in the episode. I posed a link to to the full episode in my last response.
Also don't forget that this guy is eventually going to live in the place...but for now, the math works especially if he's planning to live there down the line. He's covering the costs & getting an additional $2,900
How much would this kitchen cost to do (price with and without appliances)? Including the hanging ceiling lights.
This is almost what I specifically want redone in my place...high lacquer type counter tops.
This kitchen is almost identical to mine. I think it's a new construction "thing"...this style is all the rage with new buildings. Not sure what it would cost but I can tell you that the counter tops are CaesarStone.
he paid $775,000 , no rent is not going to break even for him anytime soon. BUT we can expect that property to be $1,000,000 or more in the future, so he can sell it back.
And unlike other investments, he is getting a steady stream from the rent income to keep himself afloat (or to re-fatten a bank account, or pay down any loan if he used leverage).
also, John Jacob Astor bought nyc real estate during a weak housing market in the 1800s. He died with 20 million in 1800s dollars (which is 1.2 billion in 2012). NYC was a slum then and the demand drove up all the housing anyway. So I definitely wouldn't be concerned with a manhattan neighborhood with an outdated perception.
This kitchen is almost identical to mine. I think it's a new construction "thing"...this style is all the rage with new buildings. Not sure what it would cost but I can tell you that the counter tops are CaesarStone.
Thanks! Yeah it's a good urban look for condos. The terrace on this condo is impressive. It's nice that you can see the Apollo sign from it, though its no Empire State Building.
he paid $775,000 , no rent is not going to break even for him anytime soon. BUT we can expect that property to be $1,000,000 or more in the future, so he can sell it back.
And unlike other investments, he is getting a steady stream from the rent income to keep himself afloat (or to re-fatten a bank account, or pay down any loan if he used leverage).
also, John Jacob Astor bought nyc real estate during a weak housing market in the 1800s. He died with 20 million in 1800s dollars (which is 1.2 billion in 2012). NYC was a slum then and the demand drove up all the housing anyway. So I definitely wouldn't be concerned with a manhattan neighborhood with an outdated perception.
there are lots of investments that provide income streams as well as capital gains. any investment can be bought on margin and have the investment pay off the loan as it appreciates or from the income stream.
when all is said and done my portfolio that i have since the 1980's has beaten any of our real estate investments as far as gains.
over the same time frame a house we sold that was 169k in 1987 and sold for 335k in 2003 ,that same amount in a simple mix of fidelity funds was over 1.6 million.
traditionally the equity markets have blown residential real estate out of the water by 3 to 4x the gains over time. certain areas faired better but taken as a whole appreciation on residential real estate has been just above the rate of inflation.
that leaves just cash flow as the deciding factor and as a real estate investor for over 25 years i can tell you finding an apartment somewhere in a decent area and building that has positive cash flow from day one is very rare. it can take many many years until that happens if you pull out the depreciation number which has to be recaptured when you sell.
john jacob astor wasnt buying residential apartments in co-ops or condos.
on the other hand commercial property in nyc has been a fabulous investment.
Last edited by mathjak107; 03-04-2012 at 03:27 AM..
john jacob astor wasnt buying residential apartments in co-ops or condos.
He was buying raw land and renting it out (with an obvious positive cash flow, enough to make him America's first millionaire.)
Quote:
In the 1830s, John Jacob Astor foresaw that the next big boom would be the build-up of New York, which would soon emerge as one of the world’s greatest cities. Astor withdrew from the American Fur Company, as well as all his other ventures, and used the money to buy and develop large tracts of Manhattan real estate. Predicting the rapid growth northward on Manhattan Island, Astor purchased more and more land beyond the current city limits. Astor rarely built on his land, and instead let others pay rent to use it.
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