[quote=AN]Nope, not even close. They all are around 325-375k now. Was around 300-350k late 2008.[/quote]So, I guess you don’t spend *too* much time searching. It’s actually an entertaining little search in Redfin…
[quote=AN]With 250k, 20% down & 5% interest rate, PITI would be around $1400/month. If it rents for $1700/month, that’s $3600/year in profit. From a $50k investment. That’s 6% return before talking about any write offs. That sounds pretty decent to me. At $200k, we’re looking at ~$6500/yr. That’s over 10% return.[/quote]What writeoffs? Depreciation and expenses of course, but it’s the latter that’s not being considered at all. To me, a safe figure for annual “overhead” is around 5% of rental income. This covers things like maintenance and gaps in tenancy. So, again seems breakeven to me at best and you’re out 50 grand.
Obviously better at $200K, but I also suppose once prices do get back down to those ranges, the possibility of actual appreciation seems to become more likely.
