f you assume a monthly rent of $1000, a “cash flow neutral” house at 5% cost of money, very approximately, works out $240,000 (=$1000*12*20)
bsrsharma, your numbers are ludicrous.
$1000 monthly rent for a SFR ?
You are off by a factor of two.
Consider an area of San Diego where homes are just about the median price: Clairemont. Median price in Clairemont (92117) SFR : 430K
Typical rent in Clairemont for a 3/2 SFR : $2200 per month.
SFHs around the median price are 5-10% from cash flow, not 40%+.
