May 13, 2008
Here's how one screwed Miami condo investor thinks he's gonna break even on his depreciating debt-trap.
It's gotta suck for millions of investors around the country (and around the world) who bought debt-traps that only rent out for a fraction of what it costs to "own".
Negative cash flow on a depreciating condo or house is the worst of both worlds.
I liked this spreadsheet though. Oh, the optimism. Yup, the price is gonna go up, not down. Yup, rental income is going to ABSOLUTELY SOAR. And no, expenses won't increase - not at all!
Amazing. And sad.
Too bad this poor sap didn't do a spreadsheet BEFORE he bought his debt-trap. Too bad millions didn't bother doing a spreadsheet before they took out toxic loans or listened to realtors on commission.
And too bad that just because you put numbers on a spreadsheet doesn't make them true.