[quote=CA renter]I see your point about LLs not putting properties on the market, SK, but believe that many would still choose to put their properties on the market if they can’t manage to make the same returns. OTOH, with interest rates and other asset classes valued as they are, they wouldn’t have many other options until/unless interest rates go up (and asset prices down). I’m just surmising based on what many LLs would think based on a tax reassessment at full market value for their properties. There is no doubt that their margins would be crushed.[/quote]
The bolded part is the important part. Although I’m not sure interest rates are the key. The key will be alternatives. Can they invest their after tax proceeds on sale and get a better return? If values go down, then returns go up. (cash flow/net value) If investors are still buying today (or at least in some parts of the state, were until very recently), and paying full property taxes, they’re doing it based on a belief that it is better than alternatives. Some current owners may evaluate it differently, but these are people who are already comfortable being landlords. So it seems unlikely.
