CA Renter — how is renting SFH homes any different than buying anything else (like cars or power tools) on credit and opening a rental firm? Damn right that either example is a business, and all should benefit from loan interest deductions. If anything, the legalities and maintenance on real estate make it more work than some other rental businesses.
Want to keep homes affordable for primary residents? Make it a policy not to give loans where the cost of interest + taxes + expenses is greater than the market rent for the property.
Landlords seldom overpay, since their goal is to make a profit. The people who overpay are usually primary owners — because OHMIGOD IT’S GOT A PERFECT VIEW, and the YARD is soooo BIIIIIG, PER-fect for little Bratty and Bethie to PLAY OUTSIDE after SCHOOL. AND the KITCHEN TILE, so RETRO CUUUUUUTE! zOMG GUSH!
