[quote=GoUSC]I have the best comp possible, the current tenant. But really it’s no important as we are moving into the house. The point was to demonstrate that there are homes out there that can be bought for prices that at least come close to penciling on a rent vs. own basis.[/quote]
I’ll be blunt. I don’t think it pencils out or even comes close. I’m not very familiar with Bird Rock area, but similar size condos in the area seem to rent for high 1000’s. And there’s no way your FHA PITI less tax deduction is less than 3000. A single tenant willing to pay 3000 to rent the house is not sufficient to demonstrate that the property comes close to penciling on a rent vs. own basis.
You might argue that it comes close if you compare rent and PITI less tax deduction, less principal. Though even that is a bit of a stretch.
Of course, if you have enough cash to buy the house outright, you don’t need to worry about the possibility of losing 100k in equity before PB bottoms out. And a 3.5% FHA loan will protect you nicely against any downside.
