Prop tax plus mark up?????? Not on any residential RE I've rented. I don't pay any of that stuff, except normal utilities. The owner is on the hook for the property tax, repairs, insurance, HOA. The owner of my place is OVER $1000 cash flow negative EVERY month. Just found that out the other day. :eek:
How are ya Crackedback! I'm only quoting someone else who stated that tenants in the USA pay property tax plus mark. To be honest it sounded like crap to me too!
I am not sure how stupid you'd have to be to invest in a -1K a month negative cashflow property. Maybe your guy is the same that bought Amazon at 350$ and held it for the long term.
We have some pretty stupid people here in Oz. An old childhood friend of my family bought an investment property in a new development which was built over garbage dump. It is miles away from public transport and the only way out is by a toll road. He has not had it rented out for nearly two years, since he bought it. His hours at work have been cut due to the governments new workplace laws, interest rates are going up so are his mortgage repayments and yes he did buy the worst performing ex-government owned former public utility -Telstra TLS:AX There are thousands of people like this guy in this city.
Most people who bought homes recently in the US to rent out have negative flow. 1000/month is common. They all bank on the appreciation of the homes to make profit.
You're probably right. I wonder what % of those people bought their rental property using interest only loans.
http://inlandempire.craigslist.org/rfs/171809450.html Check that out. I wonder what kind of program they are talking about there. Probably a 60 year loan ?
http://inlandempire.craigslist.org/rfs/172529119.html Can you believe the idiots who would fall for this scheme ?
Wasn't busting on you... that statement for residential real estate is not true in general. There may be some places that it occurs, however, it's not the norm where I've lived. You pay rent at an agreed amount per month and that's it. Commercial real estate with "triple net" then, yes you pay those cost plus markup, not residential. I was too lazy to grab the original post regarding the markup. Cheers!
ha.. it looks like the owner is trying to sell a covered call on their house. That lease premium is way to expensive. Not anywhere near fair market value.