January 30, 2011

Mark Moves to A Bigger Rental

Palo Alto’s most famous renter has pulled up stakes, so he can live even closer to work.

According to Zillow Blog, Mark Zuckerberg’s old rental came back on the market, for a whopping $7,850 a month.  Here’s the description from Craigslist, although supposedly the place has found a new tenant:

Prestigious location! Charm and functionality! Gorgeous 2 year old 4+BR/3BA Single Family House. Chef’s kitchen with gas stove. Only 2 years new. Approximately 2350sf. Huge family room with the view of Kitchen. Washer/dryer on the second floor, wood burning fireplace and beautiful wood trim are some of the amenities of this house. Walk to Stanford University, restaurants on El Camino Real and extremely close to Stanford shopping center. 2 car parking garage. Please call for an appointment. Lease term 12 months or longer. Only $7850/month.

imageHis former rental house is 2073 Princeton Street, which Zillow estimates is worth $1,362,000.  We don’t know what Mark was paying in rent, but let’s use the new asking price and calculate the price rent ratio: 14.46.  Whoa!  If that Zestimate is correct, it says Mark should have bought the old place!

But that’s okay, thanks to Burbed reader SEA we can do the same for the new place!  Mark is now living at 2300 Amherst, even closer to Facebook headquarters!  The new rental is 5 bedroom, 4 bath, and 3801 square feet, and Zillow’s estimating this one at $2,142,000.  Alas, the monthly rent amount was not reported.

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Mark Zuckerberg I’m paying $10,900.  Friend me!
about an hour ago · Like

Comments (6) -- Posted by: madhaus @ 5:05 am

6 Responses to “Mark Moves to A Bigger Rental”

  1. SEA Says:

    Monthly Rent: Using 1% of purchase price as a break-even point, anything less than $21,420 per month would be a deal. In other words, if we assume that $10,900 number to be correct, then Zuckerberg is getting a deal, ignoring significant upward changes in market value.

    Looking the other way, $10,900 per month is $130,800 per year [=10,900 x 12]. That’s 6.1% of the Zestimate.

    According to Zillow, the last sale was June 1999 for $420,000. Proposition 13 is likely keeping the taxes low at $5,446.

    I have no doubt that, on a historical basis, receiving $120k in rent on a $420k purchase is very attractive. That said, Zillow has the peak Zestimate at 3.36M in early 2009, or a reduction of 1.2M in the last two years. In other words, this place has gone down in Zestimate by a total of 10 years’ worth of rent at the current rent amount.

    So on the one hand the landlord might be happy to have such a positive cash flow stream for a small historic investment, the market value has gone down significantly, if the Zestimate is a indicator of true market value. The 30-day change in Zestmate is down by $70k, or about 7 months of rent.

  2. madhaus Says:

    Only one comment? Where’s the danged Dislike button?

  3. SEA Says:

    I was hoping for someone to come post that Zuckerberg is a ‘man with the wrong plan.’

  4. nomadic Says:

    #2, what do you expect? He’s a rentard. If it makes you feel any better, I did reference this post in the other thread today.

  5. ChrisD Says:

    Mark can probably write off his rent as a business expense. When FB goes public, one can only imagine what will happen to the PA market.

  6. Want an investment property close to Facebook? TOO LATE [Burbed.com] Says:

    […] fact: Mark Zuckerberg rented nearby 2300 Amherst until he bought the big walled property. Tags: $1.25 mil-$1.5 mil, College Terrace, Facebook, […]


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