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Doug Freyburger wrote:
> There isn't a good linkage between amount down on a
> property and amount of rent charged.
What I mean by property value is full property value,
not amount down used for financing. Please assume that
the property will be bought in cash, not financed.
I think there is some kind of linkage between property
value and rent amount. If you buy a property for $100k
and ask for $10k monthly rent, which is 10% of property
value, then that would be too much on average. If you
ask for $100 monthly rent, which is 0.1% of property
value, then this is too little on overage. I am looking
for that percentage number which can be considered not
too much and not too little on average. I know this
percentage ranges from one market to another, and
subject to man other factors. However, I am only interested
in the average that most avid real estate investors
consider reasonable (assuming no financing involved).
Of course, many might be tempted to reply to my question
that avid investors would not buy a property in cash and
will always finance. Please let's rule out the financing
option for now, just for the sake of argument.
-AA
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Re: Real Estate Monthly Rate of Return
