Apts Analytics

I found a new agent and he has better properties. Hmm.. interesting the first agent was showing me crap. What the hell dude. I guess if you show someone crap.. then show him 1 good prop, the dude is going to take it immediately. Is that the strategy? My coworker says he has a pimp place he is going to move out of so thats another option.

I was also looking at the economics of this situation and it was interesting once I crunched the numbers. (Hey this is like my real job doing Analytics). Here's the deal, relative to income I am looking at paying:

type    % of gross  % of net    % of adjusted net*
cheap      15.00%    25.00%      17.65%
okay       18.75%    31.25%      23.08%
pimp       22.50%    37.50%      29.03%

*adjusted net is because I pay rent pre-tax out of my paycheck. So for this I take [rent*(1-taxrate)] / [(gross-rent)*(1-taxrate))]. gross is just rent/gross, net is rent/net

Now the interesting thing is.. in SF I was at these metrics:

type      % of gross   % of net
slum*      12.01%       18.33%
mtview**   20.21%       30.86%
sf pimp    24.00%       36.92%

* yes i slummed it in menlo park in 2002-2003 before buying in mtview.
** i owned in mtview, but i am basing it on mortgage.

So whats this mean? I guess it means if I want to pimp out I shouldn't feel so bad about it since the %'s aren't worse than my prior life.

Another interesting survey figure from a Gisco professional survey on monthly rent:

             AUS     Canada GBP       India  Singapore  U.S.
Median       $700    $818   $934      $141   $501       $1,000
% of salary  18%     18%    16%       12%    24%        19%