With close just around the corner it’s not too surprising to see the investors starting to advertise. Maybe I shouldn’t have bought and just rented either of these. Both are west facing units that I considered buying.
$2850 / 1br - Large-View Apartment near First Hill, Seattle University and Pike-Pine
They say it’s 1200 square feet and it’s on the top floor but the only 1200 square foot unit is 2 bedrooms? It looks like unit 502 but that unit is only 812 square feet. I’m confused.
$2100 / 1br - Loft Living at it finest!!
Looks like unit 304.
Popularity: 4% [?]
13 responses so far ↓
1 kh // Sep 14, 2007 at 8:56 am
you’d only be saving a couple hundred $$ every month though!
2 James B. // Sep 14, 2007 at 9:09 am
Anyone run the numbers to see what the investment looks like? Looking at #304…
I don’t know typical investor financials (assuming 20% downpayment, taxes of $2800/yr, current 6.5% interest rate for primary residence, 33% income tax rate) it looks like a $2100 rent covers a $450,000 price tag — after benefits of income tax deduction from interest payments.
Not sure what the interest rate would be for an investment property — it would definitely raise the carrying costs. Is $450,000 high or low for the likely sales price of $304?
3 Matt // Sep 14, 2007 at 9:26 am
I can’t find the original price of #305 but it is likely $425-$450k. Though isn’t the income tax deduction only for your primary residence?
4 Matt // Sep 14, 2007 at 9:29 am
Actually my records say $470k.
5 seattle67 // Sep 14, 2007 at 11:22 am
Also have to include homeowners dues in the cost estimate.
6 Matt // Sep 14, 2007 at 11:49 am
HOAs are $300/month and I believe all utilities are separately metered.
7 James B. // Sep 14, 2007 at 11:57 am
I’m don’t know much about it but I believe you can deduct interest payments from your income derived from the property. So, minus interest payments, you would show a loss on the property and deduct that loss from your overall income. That’s my understanding anyway.
8 James B. // Sep 14, 2007 at 12:09 pm
I included HOD of $298/mo in the above calculations.
Anybody know the tax code with deducting interest in investment properties?
9 Matt // Sep 14, 2007 at 1:52 pm
I’ll find out next year :).
10 christiangustafson // Sep 14, 2007 at 10:17 pm
$2800/mo! Amazing. Only a couple of years ago I paid $1400/mo for a 2-level loft with a private deck at 215 2nd Avenue S, in the heart of Pioneer Square.
Great place to live, loved it, hung out downtown, walked to my job, went to a lot of Mariners games. For $2800/mo in rent, jeez, I want something truly special, like Mercer Island waterfront or a killer view penthouse.
Heck, a paltry $800/mo had me 45 stories right above the Chicago River throughout most of the 1990s.
11 kpom // Sep 15, 2007 at 2:30 pm
“$2800/mo! Amazing”
It remains to be seen whether this is a “wishing” rent or an actual rent that somebody is willing to pay.
12 jo // Sep 16, 2007 at 6:38 pm
my guess is that they are including the deck as part of the sq footage
13 Rachel // Sep 17, 2007 at 7:17 am
I don’t even know how they are covering thier costs on a 5th floor unit at $2800…
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