Modern real estate tycoons

lukep

lukep

He Hath Arisen
Sep 18, 2010
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God I love this:

I Bought an Apartment Just to Rent It Out on Airbnb

Cost of apartment: $40,000
Cost of redecorating and furnishings: $10,000

Revenue
November 2012 – November 2013: $19,613
Average monthly revenue: $1,634
Rough monthly profit: $1,134 (after cleaning, bills and other expenses)
Yearly profit: $13,608
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#DecentralizedWealth

Seriously thinking about it myself... Because in Communist Amerika, real estate owns YOU!
 


I read this post a few days ago, I had one thought - why did he not include property tax in the expenses?
 
goldmercury said:
I read this post a few days ago, I had one thought - why did he not include property tax in the expenses?
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Because most people when they talk about 'profits' they really mean 'revenue' - It tends to be that those with real profits don't talk about them so much.

Just like most gamblers and their higher end kin; traders.
 
goldmercury said:
I read this post a few days ago, I had one thought - why did he not include property tax in the expenses?
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I'm a little confused by that part myself... He calls it an apartment, not a condo, yet he seems to have paid for it, not rent it, and then he says he replaced the floor.

I guess it was a condo. I'd much rather do this with an apartment, of course the lease would have to let you sublet it.
 
The terms condo and apartment are somewhat ambiguous. Zoning regulations vary. In general, if the majority of units in the shared community are owned by independents, these units are usually referred to as condos. If the majority of units are rented from a common owner these units are usually referred to as apartments. Sometimes apartments can be purchased, like a condo, from the common owner of the apartment complex.
 
I was in Riga, Latvia lately and noticed a similar revenue model. The place I stayed at was above a pizza joint. From the looks of it, the upstairs had two large apartments.

The owner lived in one. The other she sub-divided into about 4 studio apartments. Each one was furnished nicely in Euro/Ikea style with a bath and kitchenette. The pricing was about the same as the cheapest budget hotel in the city but much better. With just a handful of rentals a month, she was probably getting more than she could with renting it out to a local.
 
where else in the US can you buy an apartment in a large city for $40k?
 
Buying one apartment and renting it out makes you a modern real estate tycoon?

cool story bro
 
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Unarmed Gunman said:
You can get an entire apartment complex in Detroit for $40k. I wouldn't recommend it though.
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The terms apartment and apartment in Detroit are somewhat ambiguous. In general, if the majority of units are rented from a common owner these units are usually referred to as apartments. If the majority of the units are crack dens with squatters shitting in holes, these units are usually referred to as apartments in Detroit. Sometimes apartments in Detroit can be purchased, but this is typically a front for a large-scale drug deal or payment for a professional hit.
 
goldmercury said:
I read this post a few days ago, I had one thought - why did he not include property tax in the expenses?
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Because here in Vegas they'll be minimal on a $40k property - probably $400/yr. ($33/mo). As a general rule, most areas of Vegas have property taxes at 1% of FMV. I'd love to see what part of Vegas that apartment is in. Probably not too far from the Strip, meaning it isn't in a great area.

The key is that the guy in LukeP's article bought the place in 2012. You couldn't give places away out here in 2012. However, in early 2013 things jumped back to life somewhat and properties have appreciated 20-40% in a year. I know my house went up in value almost $100k from October 2012 until May 2013.
 
transistor said:
Who the fuck would do unlimited cleanings for $200/mo?
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A 40-60 year old woman who is an illegal from Mexico. That's easy in Vegas.

Alternatively, the recession hit Vegas hard and there are plenty of locals who are looking to make up for lost income.
 
pocketrockets said:
Seattle doesn't have any condos going anywhere near 40k or less.
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I didn't realize that realtor.com included suburbs when I typed in Seattle the first time.

I counted this one in a suburb for $45k as close enough to $40k, but it is not actually inside the Seattle city limits I guess now that I took a closer look.

13564 37Th Ave S Apt 37, Tukwila, WA 98168 - Home For Sale and Real Estate Listing - realtor.com®

It is between Downtown Seattle and the airport, closer to the airport.
 
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