For 2-4 units the first three posters nailed it. They’re completely whacked, I’ve seen so many where the rent won’t covered the payment on a 1% teaser rate loan.
For complexes that have 12 units & up, it isn’t much better, they’ve rocketed on two factors, strong rent growth and appreciation for potential condo conversion.
As the 1st poster said, I’m really concerned looking at investment properties for the two big unknowns, how high is vacancy going to go and how soft will rents become. I’ve been eyeballing Craigslist for a while and the half off/move-in month free offers are steadily increasing. This is all before a lot of the condo market comes back on line.
Meanwhile, reported rents keep going up, but I suspect that is the same as the median going up.
A 1/1 in Nohypeville is probably the same as it was last year, whereas a trendy luxury condo downtown has someone that sold their house and is renting it for 50% more than a regular two bedroom, but 1/2 of what it would cost to own. That’s skewing the rent growth numbers. Plus, like the NAR, it’s kind of the kid watching the cookie jar on reported rents.
