"In view of the fact that you have "cherry picked" the situation and data and have intentionally excluded benefits of the FairTax it is a greatly-biased set of circumstances."
Stop making statements you can't backup-- it makes the rest of what you say not as believable... the is a real situation of a business associate of mine. He wanted/wants me to go in on it for a fairly safe 10% ROI.
So your response boils down to:
(a) the tenents should be able to afford the rent increase based on all the assumptions of FairTax's claims regarding increasing wages coming true.
and
(b) FairTax is is going to drop long term interest rates by 30% thus everyone needs to refinance the day it is implemented.
I'll admit to overlooking (b) but not intentionally. Even if the claim pans out it comes to $33/unit/month -- much less than the $135/unit/month tax.
More name calling (scrooge) does not help you case. It is a real scenario that is in today's world a decent financial investment -- I'm questioning what is going to happen to it. And I have to take the somewhat risky assumption that everything you claim about taxes, wages, interest, and prices will come true in their best case scenario (and quickly to for the slumlord). That to me is a risky investment.
Now who is it that can't recognize a bit of humor or sarcasm??? That's hardly name calling nor was it done in that vein.
Despite your claim, you HAVE cherry-picked the situation and are still trying to do it by claiming that nothing in the FairTax can possibly be real until it comes true. With that attitude in the 1700's we'd still be beholden to King George. If you can't study the very good information on the FairTax website and realize how valid it is, you should never, never invest in anything. In fact, you should go hide your head under a rock and stick your rear end out like an ostrich.
Whether you realize it or not kpp_kpp, not everything in this world you don't agree with - or that is not shown the way you'd like to have it listed - is incorrect or invalid.
As far as I can tell you've done no real research into the FairTax details at all except to note things you don't like and continually carp about them.
As far as backing up the analysis I made, it is clear that you completely ignored the fact that the renters would be getting their full wages (even without the ER half) and so that certainly qualifies as "cherry picking". In addition you made every adverse assumption you could to try to bias the situation against the FairTax. Whether done intentionally or not, that's the upshot of your choices. That's exactly the tack taken by most liberals in attacking the FairTax so it makes you no different from them from what I can observe.
You've repeatedly on this thread claimed you're a mugwamp (fence sitter) and yet you can't even acknowledge the most basic economic claims shown by many of the economic studies that have been done on the FairTax. You even claim to have been "on board" with the FairTax which obviously is untrue in view of your lack of understanding of it. AFAIK all you will admit to is 3 or 4 vague generalities that are pretty much unrelated to the detailed economic effects of the FairTax and all else you reject or look totally askance at since "it ain't happened yet". You won't even acknowledge that wage earners will get all their wages. Whether you admit it or not - THAT'S cherry picking (along with the other benefits you ignored).
If you're looking for risk-free investment you will look forever. Your childish pretense about the FairTax will not help you analyze this or any other investment. And BTW it is not something I claim, but something that many economists have studied and believe will behave as presented by the FairTax website.
If you think it's risky under the FairTax, I'll have to tell you that it's going to be far riskier under the present system as income taxes are going to become more onerous and spiral right on upward as is the inflation rate which is merely another hidden tax. There's no free lunch and there's no unrisky investment. Thinking you can find one shows your naivete. You'd probably be better off not investing in anything as you'll only be disappointed wihen it falls apart.