[quote=gzz]Best thing to do is buy a new house to live in and rent out the old residence. That way you get a very low primary residence interest rate.
I think SD rentals make sense if you can get 3.25-ish purchase rates or you are investing cash that otherwise would get getting 2% or less as a safe long term rate.
A mostly-financed rental at 4% seems a bit aggressive. Probably it would work out including appreciation, but you’d likely be cash flow negative at first.[/quote]
I agree with the rates aspect, but classifying it as an investment does have some great tax advantages depending on ones financial profile (prop tax, depreciation, insurance, etc.)
I’m approaching it from the mindset that I might break even more or less (maybe a couple percent), but with an avg conservative rent increase of 3% per year in 5-10 years I’ll have a nice little cash flow relative to my original downpayment plus expenses over that time.
That is kinda why I’m looking for the historical data. I’d like rent data going back through a couple downturns so I can see what the rents did during those times. I already know they were not effected much during the last one, but I’m trying to go further back.
My gut says that with everything going on my 3% is extremely conservative, but I’d like for someone to disagree with me and provide some reasons or data too.
