Rob, Both Buyer and Seller in Tampa, FL

Why is this a "great investment opportunity?"

Asked by Rob, Tampa, FL Wed Aug 1, 2012

Please explain the great investment opportunity this property presents with facts and figures. Too many listings on Trulia include that exact same phrase that it no longer means anything. It's just jargon and a sales pitch.

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This question is about this property: http://www.trulia.com/property/3091549985-302-1-2-Carolina-D…

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I have a property that is also a "investment opportunity". I would define an investment opportunity as a place that is below market value so that you could flip it if you wanted, an easily rented place that would provide you with property income, or a fixer upper where with a little effort has a lot of potential. Desirable locations that are close to amenities, shopping, colleges, and beaches are, to me, considered a good investment. Let me know if I can help you in any way. Thanks, Sarah
0 votes Thank Flag Link Tue Jan 22, 2013
Hello Sarah, I appreciate the feedback. I went through the motions of creating a pro-forma (though it has been some time since I did so for this property), and while I do not recall the exact figures, the property's ROI as a rental was definitely not a "great" opportunity. It did not even approach the S&P average return.
I take issue with the phrasing of such adverts because very, very rarely are they substatiated with clear arithmetic. Very little of my investment decisions hinge on claims of desirability. In my opinion performance history is the only true mechanism of evaluating the quality of an investment.
Flag Tue Jan 22, 2013
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