Single family RE in Daytona Beach has reached Depression levels, writes Robert Sinn, with cap...

|By:, SA News Editor

Single family RE in Daytona Beach has reached Depression levels, writes Robert Sinn, with cap rates of 20%, i.e. operating income of $20K on a $100K purchase. With the cost of capital less than 5%, well, you do the math. Bank of America (BAC) owns at least 1/3 of single-family RE there, and may not have taken the marks yet - something to think about the next time someone says BofA is cheap on a price/book basis.