Good input so far on ways to tweak the analysis. Since Mr. Wrong’s analysis is predicated on the fact that he intends to stay in SD for the long term, a fixed rental expense cannot be used. I’m quite sure a 3 bed/2.5 bath 1500 sq ft condo did not rent for $2200-$2500/mo 10-15-20 yrs ago. My old neighbor rented her very nice 3 bed/2.5 bath townhouse in PB for $1250/month in ’93. Rents will be up up up in SD over the long term, and that must be factored in to get an accurate picture. Also, Mr. Wrong don’t forget the income tax you will have to pay on your interest income if you invest your down payment money.