Tag Archives: investing

Sometimes You Can’t Tell

Note: due to the recent conviction of James Holmes, this article is receiving some new visitors. Welcome! Please bear in mind that this was written 3 years ago.

A great investment! Instant cash flow! Buy it today! (Strong constitution required.)

Paris is for … Landlords?

1690 Paris Street is a 129 unit apartment complex on 111,115 square feet of land. It has 11 buildings containing roughly 12 units each. It has a sweet 3.9% vacancy rate, convenient location, and the units have, according to the sales flyer I have here, been maintained well over the years by a “hands on” owner.

It was listed on the market for two months the autumn of 2010 for $6.4 million. They tried again in early 2011 at the same price. It nets about $519k per year for an 8.06% CAP rate. I can’t tell if it changed hands or not.

It’s also probably it’s current owner’s worst nightmare come true.

1690 Paris Street, Aurora, Colorado. Home of James Holmes, who filled his apartment with so many booby traps and explosives that it took the bomb squad two days to clear it out with robots. An apartment building full of medical students who all made it their first choice in a rental search at some point over the past few years, thinking “I want to call this place home.” Now it’s a poster child for “worst case investment property scenario” making landlords across the country reach for the Xanax and hope that nobody in their buildings has done the same thing. (more…)

Hype Dodger: Zillow rent report provokes mass media faux-analysis

New Rent Report Suggests Possible Bubble – CNBC.

That article up there? It’s written with one purpose – to make you panic and buy stuff.  Courtesy of CNBC.com comes some hype about the rental market. Apparently a new report from Zillow shows rents rising in almost perfect proportion to home sale price falling nationwide. They specifically talk about the high year-over-year rent growth for Chicago, as shown in this month’s Rent Bacon.

Investing in the rental market requires a level head that can stay above the hype. If you feel like you’re running to catch up with the investment market, stop and take control of yourself.

Of course, the media will take any statistics on the housing market they can get and turn them into hype. If they don’t provoke your emotions, you might use your logic to make a decision, and that never works out well for them nor for their advertisers. But they are trying to manipulate investors in the rental market by using the same tactics as those that worked to make home buyers and sellers all crazy and depressed.

They’re doing it wrong. (more…)