Message Boards

Guidelines

  • Please be sure posts are category appropriate.
  • No off-topic or off-color postings.
  • Postings may be deleted at the discretion of HGTV Moderators.
  • No advertising is allowed.
  • Be Nice. No name calling, personal attacks or flaming.
  • Certain words will trigger moderation of the post. These words mostly cover political and religious topics, which are OFF the topics covered by HGTV.
  • For general message board help, click the tab labeled "Tools," and choose "Help" from the dropdown menu.
Full Guidelines

  HGTV.com
  HGTV Message Boards
Hop To Forum Categories   HGTV Feedback Center
Hop To Forums   Talk to HGTV Community Gal Abby
  We need responsible math when talking about income properties
Go
New
Find
Notify
Tools
Reply
  
We need responsible math when talking about income properties Sign In/Join 
posted
I love the show Income Property but I am very concerned about the numbers people are given by Scott McGillvray. How on earth is he coming up with these numbers? In the episode "Successful Newbie Investors", Scott tells these new investors that it is 540,000 to purchase and reno, 1,625 mortgage payment, will bring in 1,700 in rent so they will live free and make $75 a month. WHAT? The numbers don't make sense and they are never explained, and they certainly don't talk about taxes and insurance. I think this is very deceptive to any new investor watching the show and thinking this is how the numbers work. The show should explain all the REAL numbers.

- Bob and Sue have a budget of 500,000. They have 120,000 cash and can qualify for a 4% mortgage.
- 380,000 over 30 years at 4% is a payment of 1,814 a month plus taxes and insurance.

House 1: 500,000 purchase and reno, $350 for taxes and insurance. Mortgage, taxes and insurance is 2,114 a month. Rent is 1,600. Bob and Sue will live for $514 a month. They will also be paying principal down as well as have tax advantages associated to income property. Not a bad deal at all.

These are the real numbers.

Gerald Demers

Question:
Will you consider having Scott include all the numbers and really show people how they work?

Choices:
Yes
No

 
 
Posts: 2 | Location: United States | Registered: Jun 10, 2013Reply With QuoteReport This Post
posted Hide Post
This question should apply to all shows that deal with the numbers. Gerald
 
Posts: 2 | Location: United States | Registered: Jun 10, 2013Reply With QuoteReport This Post
posted Hide Post
Totally agree--the fuzzy math is very deceptive to the average person who watches the shows. The idea that renovations are completed and that they automatically up the value by a given amount is pure guesswork. No one should base their decisions on the numbers that are basically just estimates as to what the market would be if that home were up for sale.
 
Posts: 3048 | Location: Ohio | Registered: Feb 25, 2006Reply With QuoteReport This Post
  Powered by Social Strata  
 

HGTV.com    HGTV Message Boards  Hop To Forum Categories  HGTV Feedback Center  Hop To Forums  Talk to HGTV Community Gal Abby    We need responsible math when talking about income properties

Comparison Shop for Home Decor and Garden Tools at Shopzilla and BizRate. Also in Europe.