Sedona, Arizona case study - Posted by monique

Posted by DaveD (WI) on March 16, 2006 at 08:59:53:

I’ve been to Sedona. Beautiful. But I don’t know why I’d invest to lose money. Maybe she could buy more and make it up on volume!

Up here in cold country if the numbers don’t make sense and we can’t make money on the going-in buy, we don’t buy. Period. If it appreciates that would be a pleasant bonus.

Sedona, Arizona case study - Posted by monique

Posted by monique on March 16, 2006 at 07:45:35:

I am trying to decide whether to sell my 2/2 top floor condo in Sedona Arizona (Village of Oak Creek). The stats are the following:

Bought in 2004 for 175k (only 17k down)
Impounded mortgage is 1150/month
Monthly condo fees are 230/month
rent is only 800/month (reliable tenant)
2005 tax savings of only $3000.00

This condo might sell for up to 225k at this time. I originally bought this for speculation and have no intention to retire to Arizona (in my mid-30s). By my estimates and those of my accountant it appears we have a break even here or perhaps worse. Can anyone think of a great reason not to sell. Anyone interested in buying? All feedback appreciated…Monique

Re: Sedona, Arizona case study - Posted by dealmaker

Posted by dealmaker on March 16, 2006 at 08:51:24:

I’d be out of that pig, TODAY. You’re LOSING $6960 a year on it. Although congratulations are in order for being in a 43% tax bracket (not sure how you do that! I thought the top rate was 35%), you’re still losing $3960/year, plus the opportunity cost of your $17K downstroke and your closing costs.

It sounds like you’ve gotten some pretty good appreciation out of it, $50K in 2 years is sweet. You’ll still have some selling expenses but you should net about $208 or so.

I’m sure others here will tell you how it’s going to appreciate 1,000% in the next 10 years, etc. BS! I do this for PROFIT, not for LOSSES. If I want tax losses I’ll give my church.

I’d dump it NOW.