I had these same concerns when my wife and I were looking for a place to rent just recently. The last thing I wanted to do was end up in a place where
1. The house would be foreclosed on
2. The owner would try to sell it while we’re living in it
3. The owner would be so desperate to make their payments that I’d see big increases in rent.
So, when we were looking, I used the public records information (via MLS) to find out when the places were bought, for how much, and how much was mortgaged.
My wife and I lucked out and found a great place in Torrey Highlands where the owner put up a large downpayment for the place. We’re paying under the comps for rent. I ran the numbers and it looks like after mortgage, HOAs, taxes, etc., he’s still profiting pretty well every month. And the previous tenants who were there for 2.5 years said he never raised the rent, and in fact, didn’t even raise it for us from what they were paying.
So, I’m definitely not worried. The owner did mention he may want to sell in a couple of years. Personally, I think he’ll change his mind when he sees that the value of his house is below his purchase price by that time.
