It is not about if you can cover the mortgage, the question about the rent price is so you can use a time tested formula of rent to price ratio that will give the rest of us an idea of how it pencils out. Places that pencil out have a support level, where an investor would buy it, giving it a floor price, that way we can see the risk.
If it is in a complex, then finding a comparable rent should be easy, not for the area or a house, but for one in that complex. If the going rent is 2k, and the place is 400k, then your rent to price ratio is out of whack and there is still room for it to fall before investor price support kicks in. Try not to exceed 150x rent for the price, 2k rent x 150=300k, 3k rent x 150= 450. If the rent is 100x the price, jump on it, ie. 4k rent, 400k price.
anything above 150x is a risky play, the lower the multiple the better off you are. Location is irrelevent, beach is irrelevent, the added benefits shoud also translate into added rent. If it doesn’t, wait for it, the train is on the way.
