Question - Posted by Brenda K

Posted by JPiper on June 14, 2000 at 01:40:45:

I wouldn’t value a single family house or a duplex on the income. I would use comparable sales. For a description of this approach see JP Vaughan’s How To Article on comps.

Houses are mainly bought and sold by people to live in…not to rent. And therefore, this is the major influence on value. Naturally, if you were buying one as an investment property you would want to know the rent (and make sure to check out the rent comps), because the rent level might help to drive your exit decision.

BUT, the bottomline is that the rent on a single family house has nothing to do with it’s value. What people are buying and selling them for does.


Question - Posted by Brenda K

Posted by Brenda K on June 13, 2000 at 12:38:56:

So if the average 3 bedroom place in an area was renting for about 600/month what would be the most you guys would pay for a house?? a duplex??