[quote=flu]
It won’t be cash flow negative if the property is free and clear. Then it’s more or less simply cash on cash return
Hyothetically, one can spend $300k on a 1/1 in MM that rents for $1600 month. Factoring in HOA, insurance, and ptax costing $450/month, that’s still
$13800/300000 or 4.6% return[/quote]
Well, don’t have that much cash. But continuing on with your #s, you have some good assumptions on that. A few places I looked at have HOA around $250ish. Add in the other costs, and I think I never managed to get above 3%. Add in all the non-$ costs associated with managing a local property, seems like there are better investments (stocks, non-CA property)
