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Thread: A tale of 2 Florida houses

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    BiscayneSunrise's Avatar
    BiscayneSunrise is offline iTulip Ambassador; iTulip Select Premium Member
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    Default Re: A tale of 2 Florida houses

    What city were these houses located?

    With price appreciation no longer baked into investor calculations of value, a house bought for investment purposes must be priced based on its ability to bring in rental income. With rents stuck at the low end, price appreciation is unlikely to follow.

    At the low end of the market, houses and their associated mortgage payments are close to their monthly rental.

    At the high end, houses are still wildly over inflated. I recently saw a house in a premier water front neighborhood here in South Florida priced at $2.5M with the option to rent at $7,000/mo. A $2.5M house, even with 20% down, PITI would be around $15,000/mo. The house has been sitting for sometime with neither a buyer nor tenant. Still way overpriced.
    Last edited by BiscayneSunrise; 07-06-10 at 08:35 AM.
    Greg

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