I countered with the argument that if a recession hits and I lose my job I may be effectively screwed if I am unable to rent it out. He said that is pretty much impossible to lose since if I would give a $1000 discount there would be hordes of people willing to rent particularly in a recession when people are looking for discounts. So $1000 x 12, even a 12 month buffer is just $12,000 that I need to have.
Somehow, I am more uneasy about this, it can’t be so simple and risk free or can it?
An $825k home can rent for around $4500? I am guessing but is there that much rental demand in this segment? I think not. Not many people rent such homes, they usually purchase them.. that is what I am thinking.
The type of people that can afford to lay down $4500 a month is slim and even if they could it’s more likely they would be buyers not renters. That was my thinking. Now one can always rent individual rooms out but that is also a challenge I guess.
I felt $1500-2500 is the sweet spot to find renters.
