I’ve heard of people that are qualified getting loans for around 5.25% on investment properties in town with 15% down. If you get a condo in La Costa or somewhere for around $200k that rents for $1700 or so would that seem like a good scenario? Of course you have to figure some vacancy/repairs/management/taxes and all, but I think you’d still be cash flowing a bit no matter what.
Yes the value might go down, but I do think that rents are going to go up in my opinion. I mean…do rents ever go down in a community like North County San Diego? Or course it is better to get appreciation and cash flow, but can’t you just let it cash flow until it does appreciate….of course not right around the corner, but if a 30k investment returns 6k a year…is’nt that a sound investment (I would think using the numbers above you could cash flow 500 a month)? Either way your making money from your money…just more some years than others right?
Am I missing something or not factoring in something that I should?
