Two Cheap Expensive Rentals

Yes, I meant the contradiction in the headline. The two rentals below are definitely not for the average renter at $3,750/mo and $4,650/mo. But do the numbers and they’re cheap for what you get, at least compared to buying them outright.

First, a gorgeous contemporary home in Leschi with sweeping views of Lake Washington and the Cascades. You get 4380 square feet, with 3 bedrooms and 4 baths. There’s an entertainment room with full access to the roof top deck that has its own fireplace.

The home is currently up for sale at $1.4 million (it sold for $1.6 in Dec. 2008). I assume there haven’t been too many offers so the seller has put it up for rent at $3,750 month. That’s how much you would have to pay just to cover the interest on a 30-year mortgage. By renting, you don’t have to pay property taxes or surrender the 20% down payment.

Then, there is a penthouse unit at the Olive 8 for rent. You get two bedrooms, two baths in 1,600 square feet. While I think most of the advertised views at the Olive 8 are overrated, this one looks fairly high up. And the finishes are high-end.

If you want it to buy it, you’re probably looking at $700,000 to $800,000. That would take you pretty close to $4,500/mo in total payments. It’s renting for $4,650. Not as great of a deal as the Leschi house. But with both units, you can live in spectacular style without a substantial commitment. If I had to pick, it would be difficult. I would be torn between the spaciousness of the Leschi house versus the great location of the Olive 8 penthouse. Which one would you choose? Do you agree with the math?