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gwern comments on Open Thread, June 2-15, 2013 - Less Wrong Discussion

5 Post author: TimS 02 June 2013 02:22AM

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Comment author: gwern 05 June 2013 12:38:50AM -1 points [-]

Revenue from a renter is simply investment income, and we'd expect the income from an apartment-bond to, like any other investment, be squeezed down to equal other investments after adjusting for risk and diversification and taxes etc.

Comment author: RolfAndreassen 05 June 2013 03:33:47AM 1 point [-]

Yes. I do not see how this answers my objection. You still have not provided a way of dividing up the $1000 into money used for maintenance and money taken out as profit, which was the original question. All you've said is that the second component should be equal to 3% or so of the investment; since we have no idea what the investment was, this is unhelpful.

The investment income is the revenue from the renter less expenses in running the building.