Asianautica, thanks for posting the house on 8470 Pallux Way.
With a 20% down payment, the total cost of ownership (mortgage + property tax + insurance – tax deduction) of this house is about the same as renting.
With that said, I think the following is going to occur:
1. Prices will go down a bit more & become attractive for investors to scoop them up.
2. The increase in the rental supply (b/c investors rent these houses out) will result lower rents.
#1 & #2 will repeat in a vicious cycle. I think the early investors will lose money because lower rents effectively create a new “floor” for prices.
The bottom for houses like the one on Pallux Way: $200k – $250k
