Comments on: Wasilla Four Plex Sales http://valleymarket.com/2008/08/28/wasilla-four-plex-sales/ Wasilla and Palmer Alaska real estate listings, statistics, market trends and real estate tips. Foreclosures, motivated sellers, and deals of the week. Wed, 01 Feb 2012 02:35:02 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Don http://valleymarket.com/2008/08/28/wasilla-four-plex-sales/comment-page-1/#comment-355 Don Tue, 30 Sep 2008 18:54:44 +0000 http://www.valleymarket.com/2008/08/28/wasilla-four-plex-sales/#comment-355 Hi: Robert Shiller in his updated book "Irrational Exuberance" indicates that except for two periods (after WWII and since 1998) REAL home prices overall have been mostly flat or declining. No longer can we expect "appreciation" when considering a purchase of a multiplex. Awhile back I was inquiring about a Wasilla 4plex that was listed for approximately $280k. I dug out some previous yearend statements from the company which had managed our Wasilla properties in the past. When I considered figures for vacancies, management/advertising, utilities, maintenance, taxes, interest (or cost of capital invested,) it wasn't until I got down to a price of $225k that we would break even. Obviously, you could get "positive cash flow" if you paid a large down (or paid cash for the place,) but, that still isn't what I would consider making a profit. In addition, most of the multiplexes that are on the market are either brand-new or those built in the 1984 time frame. The latter units are getting to a point where they will soon need extensive (expensive) repair. Maybe, if (when) rents rise, some rental properties will become feasible. Until then..... Don Hi:
Robert Shiller in his updated book “Irrational Exuberance” indicates that except for two periods (after WWII and since 1998) REAL home prices overall have been mostly flat or declining. No longer can we expect “appreciation” when considering a purchase of a multiplex.
Awhile back I was inquiring about a Wasilla 4plex that was listed for approximately $280k. I dug out some previous yearend statements from the company which had managed our Wasilla properties in the past. When I considered figures for vacancies, management/advertising, utilities, maintenance, taxes, interest (or cost of capital invested,) it wasn’t until I got down to a price of $225k that we would break even.
Obviously, you could get “positive cash flow” if you paid a large down (or paid cash for the place,) but, that still isn’t what I would consider making a profit. In addition, most of the multiplexes that are on the market are either brand-new or those built in the 1984 time frame. The latter units are getting to a point where they will soon need extensive (expensive) repair.
Maybe, if (when) rents rise, some rental properties will become feasible. Until then…..

Don

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