I’m with sdrealtor on this one, 150-175x is no deal. 100-125x rent is the parameter you should be looking for. You need to hold back 10% for maintenance/vacancy fund, 100-125 gives you that cushion. It also gives you a cushion if the rental market gets competative and you need to price more aggresively to avoid vacancy. I have looked at 125x’s that arent selling, the 100x’s are and probably always will. I guess if you think r/e is going to go up in the next year, go for it. Odds are that it will go down and you only need it to go down a little bit to get into safer investment territory. This is a once in a lifetime burst because it was an epic bubble, credit worthy investors with a stomach for r/e will be in short supply, hold out for cash nuetral/cash positive, they will come.
