Purchased for $760,000 in late 2006, the two-bedroom number 606 at 555 4th Street (The Palms) is currently rented for $3,200 a month, a rent which will increase to $3,500 on Tuesday according to the owner.
On the market listed for $699,000, monthly HOA dues are $544 and the property tax rate is currently 1.17%. We’ll let you run the numbers in terms of rent versus buy or as an investment (for which we calculate a CAP Rate under 4 percent).
The sale of 555 4th Street #606 has closed escrow with a reported contract price of $724,000, over asking but 4.7 percent under late 2006 when it wasn’t occupied and with a cap rate of under 4 percent at the higher rent.
∙ To Rent, Buy, Or Invest At The Palms By The Numbers (Not The Heart) [SocketSite]
∙ San Francisco Property Tax Rate Set To Increase 0.67 Percent [SocketSite]
∙ To Rent Or To Buy, That Is The Question (That Only You Can Answer) [SocketSite]