It used to be that the rule of thumb was $1000/month carrying cost (including taxes & maintenance) for each $100,000 borrowed. Exotic loans and teaser rates changed that.
Interest rate resets and high overall interest rates will make that come true again. I’m amazed at how many of my peers have forgotten the early 90s. Over this past weekend, a friend visiting from Orange County was asking me about investing in San Diego where prices are lower.
