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Posted by Chris Tsao on September 5, 2006, 11:44 am
dpb wrote:
> Chris Tsao wrote:
> > How come rental houses in the suburbs with a few apartments in them
> > usually always cost much much much less to buy than if these houses
> > were just a one-family houses?
>
> Because they _are_ rental property in areas zoned for rental, not
> single-dwelling. In areas w/ rentals, one typically can not count on
> property values remaining stationary or rising to the extent of most
> residential neighborhoods simply because rental property is subject to
> the vagaries of bad tenants and being managed by poor landlords (either
> for indifference and/or incompetence or actual design). This is, of
> course, a generalization that to which there can be found exceptions,
> but as you've noted, it is typical.
Now it all makes sense to me.
> > In some areas I am pondering moving to (and ones that years ago that I
> > used to ponder moving to), the houses for the price that I want to
> > spend are either too big for me or too small. It's difficult to
> > impossible to find one that's inbetween.
> >
> >
> > >From what I've seen in real estate brochures and online, you get more
> > for your money in hotels too. I am pondering buying a hotel and then
> > turning it into my own private house.
>
> ???? This makes absolutely no sense to me--you're letting purchase
> price control the property selection first? Your first statement says
> you want to spend enough to buy properties that are too big--so spend
> less would seem a workable alternative. Then, otoh, you say the same
> dollars don't buy a large enough house. That then sounds as though you
> must be comparing one very expensive area to another of much less.
> That's the proverbial "apples and oranges" -- doesn't work that way.
> Real estate is "location, location, location" -- simple mantra, but
> very important.
I want three bedrooms, a living room, dining room and a kitchen, but I
am pondering a house with more bedrooms so I can do stuff that nobody
else but me cares about. Like gating off part of the house so two
African Grey parrots can have lots of room and hardly have to be in a
bird cage, or so I can keep a mountain lion indoors (as well as
outdoors), or I'd have the widest projection screen TV they make (the
kind with the screen that you pull down). Or I'd have a house with an
apartment so when I inherit money and thus buy antiques and replica
antiques, I can still keep my furniture that I have now. Not counting
colonial and victorian houses, I think that bigger houses look nicer
because there's more that the architect can do with it, but I cannot
make up my mind what sized house to get. I like colonial and victorian
the best, so maybe I can get one that's a combination of both, if
there's such thing (and if it's official).
> The idea of buying a commercial property with thinking to convert it to
> single-family dwelling is probably _not_ a good one---first of all, you
> may not be able to effect a zoning change to prevent it from continuing
> to be classified as commercial and if so, the taxes and other ancillary
> costs are likely to make it an expensive proposition. It will also
> undoubtedly suffer from the same problem you've noted above--a
> residence in a commercial area is simply not going to have a very high
> resale value so you would be quite unlikely to be able to recoup any
> investment made in the remodeling. OTOH, if it were a reasonable
> neighborhood and not too terribly rundown, one _might_ be able to
> renovate and convert to apartments and make a go of something that
> way--but it would certainly take a good analysis of the area and
> renovation costs, likelihood of rental at decent rate of return, etc.,
> etc., etc., before one would want to make such an investment.
Oh. :-( My hopes are now dashed. I couldn't rest wondering whether a
tenenent would accidentally burn the house I was living in down. I've
noticed that a lot of hotels in towns have been ruined due to fires.
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