1600 rent is 200-225k in my book for investment properties here, I suppose that same math would be applied elsewhere but without prop 13 protection I might adjust downward. I feel proud of myself, i guessed 225 without knowing the rent, I’m getting pretty good at this stuff.
I’m sticking with 225k for the sake of the betting pool, that’s where it pencils out as a rental and that is where a renter decides to buy. Curiously, that is what I pay in rent and I can buy my place for 200k. I don’t buy it because it doesn’t fit my long term needs but if it did, I would at those numbers and that is where I think the buyers are valuing things right now. How they relate to rent, as opposed to appreciation because we all know that horse is dead for a while.
