All Forum Posts by: Nathan A.

Zillow shouldn't affect your home's value.  It is simply an algorithmic appraisal based on recent sales, your purchase price, etc.  Zillow's "zestimates" are very geographical and are often off.

If there is damage (extensive moisture, cracks, holes, etc) is may not be a bad idea to replace.  Otherwise a nice coat of paint covers a lot of imperfections. 

@Jay Hinrichs Wouldn't all the expenses be calculated in before the cap rate is determined?

Hypothetically speaking of course, if someone has $500,000 in liquid funds, could it be invested to make $200,000 residually?

Math:

Property price: $2,000,000

25% down: $500,000

Debt service of $1,500,000 at 6.25% with a 25 year term: about $120,000 annually

Cap rate 16%: $320,000

Cash flow: $200,000

I understand that finding a property at a 16% cap rate is a little ridiculous - but I know they are available. Also, I'm not factoring in closing costs, inspections, etc.

That being said what am I missing?

@Russell Brazil I think that the new HQ will create way more than the 50,000 jobs.  According to a report by the Bay Area Council Economic Institute, for each job created in the high-tech sector, approximately 4.3 jobs are created (multiplier effect) in other local good and services sectors across all income groups, including lawyers, dentists, schoolteachers, cooks, and retail clerks, among many others.

I also agree with @Account Closed, 50,000 jobs x $100,000 will have a significant impact on any local economy.

That was fantastic!