Value of Rental Property...(implied value)

[Crafty Beaver]

So if I painted you a scenario of a condo value that yields...

$20,400 gross rental income
($1680) HOA fees
($4260) Prop taxes
($1300) Insurance
($2100) Utilities (I pay)

$11,060 net cash flow

Approximately how much is my condo worth???

 

[markfromj]

$330,000

 

[cfbfan23]

So if I painted you a scenario of a condo value that yields...

$20,400 gross rental income
($1680) HOA fees
($4260) Prop taxes
($1300) Insurance
($2100) Utilities (I pay)

$11,060 net cash flow

Approximately how much is my condo worth???

Where is the condo located?

Is this rental income coming from one renter or is it more like a VRBO/Airbnb situation?

 

[hawkeyetraveler]

I know this will sound trite, but the value of your property is worth whatever someone else will buy it for. That is much more a function of market dynamics than your specific property income.

But just looking at it as a business investment, the equivalent here is how much would you have to invest to get a stable return of $11,000/year*. Assuming your alternative was investing in another asset yielding say 5% return on average your property is the equivalent of a $220,000 investment. If you drop down to 3% return it is the equivalent of a $367K asset.

* By the way it is probably less than that as you switch tenants every so often and have maintenance costs as well

 

[stanzithemanzi12]

So if I painted you a scenario of a condo value that yields...

$20,400 gross rental income
($1680) HOA fees
($4260) Prop taxes
($1300) Insurance
($2100) Utilities (I pay)

$11,060 net cash flow

Approximately how much is my condo worth???

Too many unknown factors. Where is it located, what is the age, etc.

Based on these factors alone, I'd say you're luck for it to be worth more than $225k.

 

[SalAunese]

($1680) HOA fees

This is all you pay a year in HoA fees?

 

[HawkMachine]

This is all you pay a year in HoA fees?

Yeah that's crazy.

I'm assuming it must be pretty new???

 

[Rifler]

Quick and dirty rule of thumb, based on current gross rental income would indicate $204,000...

 

[BelemNole]

 

[seminole97]

Too many unknown factors. Where is it located, what is the age, etc.

Based on these factors alone, I'd say you're luck for it to be worth more than $225k.

It's next door to the Holiday Inn in Des Moines.

 

[stanzithemanzi12]

It's next door to the Holiday Inn in Des Moines.

What does Zillow say? That's probably in the neighborhood for what it's worth.

 

[artradley]

$69,000