Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Broken_Clock who wrote (91145)	12/3/2008 8:47:20 PM
From: Sr K	Read Replies (1) of 116555

I didn't think you could mean "1x rental ratios". Rent $4,000 per month or $48k per year would not sell for $48,000 unless there was a serious other problem (like a renter trying to sell what he doesn't own). 6x to 8x or in some areas 9x was normal. 1x = 48k = not plausible 5x = 240k = possible in some areas 6x = 288k 8x = 384k 9x = 432k 15x = 720k 20x = 960k OTOH investor owners have been trying to get 5% rent to help carry the properties. Then you would have 20x on his cost or his idea of value. Unless you mean 1 times some other measure.

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