LESSWRONG
LW

632
al3c
0010
Message
Dialogue
Subscribe

Posts

Sorted by New

Wikitag Contributions

Comments

Sorted by
Newest
Putanumonit - A "statistical significance" story in finance
al3c7y10

Some of those financial assumptions are overly rosy. I did my finance homework and leanred a 5% vacancy rate implies one month every two years--nice if you can get it, but not necessarily realistic. And 10% seems to be the typical management fee, so the management + maintenance figure would need to be higher than that. 

Also worth considering: if you can make a sound investment in a house for little money down in a neighborhood with good prospects, why don't your tenants do the same? Perhaps one has overestimated the prospects of the neighborhood or the creditworthiness of one's tenants.

Reply
No wikitag contributions to display.
No posts to display.