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The study examined condo-hotels in the Florida state and projected returns over a five-year period from 2006 to 2011. Separated into four different scenarios—ranging from best case scenario to worst cast scenario—the study showed that even in the best case scenario the rate of return never pushed past 1%. Most returns were less and many were in the red. The study actually predicted that condo-hotel unit owners would actually end up spending money to keep their investment afloat—even factoring in rental income.
SFH in HI getting 5%. What ALT universe are you living in? For a single house to make sense, ex $750,000 house would need to rent for a LOT...................hahahaha.
$750,000??? Do you live on Oahu? What are you going to get for $750,000?
Anyway, a Kailua $1,000,000 home should get you at least $4,500/month in rent (emphasis on at least)
The study examined condo-hotels in the Florida state and projected returns over a five-year period from 2006 to 2011. Separated into four different scenarios—ranging from best case scenario to worst cast scenario—the study showed that even in the best case scenario the rate of return never pushed past 1%. Most returns were less and many were in the red. The study actually predicted that condo-hotel unit owners would actually end up spending money to keep their investment afloat—even factoring in rental income.
PPPPPPPPPPPPPPLLLLLLLLLLLLLLLEEEEEEEEEEAAAAAAAAAAA AASSSSSSSSSSSSSSSSSEEEEEEEEEEEEEE!
Provide the calculation that supports your TWO statements!!!!!!!!!!!
The standard pitch is that after you put down a couple of hundred thousand you can stay at your condohotel room a couple of times a year for free.
that is it. Any possible value increase would be driven by appreciation. And that could happen and be reasonable...After a while people decide it is cool to own a unit at Signature or Veer or Trump and you make some money.
Operationally hopeless. You make money only if the operating institution lets you. They simply manipulate the fees for the desired outcome.
One does not talk about Condohotels as Investments. Higher class time shares pretty much.
If you want testimony to how this all works the Las Vegas Sands is sitting on an erected building of condos that could go either way. But after almost 10 years has not put up the cash it complete the building.
$750,000??? Do you live on Oahu? What are you going to get for $750,000?
Anyway, a Kailua $1,000,000 home should get you at least $4,500/month in rent (emphasis on at least)
So you can get a 5% cap rate on that $1M Kailua home IF you can get $4,500/mo rent AND...
- no property taxes paid (sorry, you'll lose your home to the city)
- no GET paid (sorry, you'll go to jail)
- zero property maintenance (sorry, your home will fall apart)
- zero termite control (see above)
- zero repairs to anything that breaks (sorry tenant, you're on your own! LOLL)
- no management (sorry, you deal with all the headaches yourself)
- no insurance (sorry, home will need to be free and clear for this and your appetite for risk way way up there)
- zero vacancy (better hope the tenant NEVER moves)
Please provide YOUR calculation that supports your two statements and we'll see who the cap rate expert is.
Why are you being so evasive?
Since you're the only lone wolf on here that doesn't believe the Ritz is returning 0%, why don't you show all us novices how you can get your ++++ cap rate on that lux product?
Show US the numbers for a change instead of everyone else doing the work for you.
Since you're the only lone wolf on here that doesn't believe the Ritz is returning 0%, why don't you show all us novices how you can get your ++++ cap rate on that lux product?
Show US the numbers for a change instead of everyone else doing the work for you.
EVASIVE! Show me the math! I'm not the one making silly statements and then trying to cover up my ignorance. Com'on, this is your chance to shine!
Folks it is hour three of the pj737 cap rate calculation crisis. Please stand by.
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