I think what Rustico is trying to say (and it is what I’m saying), is that you can buy a house TODAY that will break-even as a rental.
We sold a house in Oceanside in Q2, 2004 for $400K, and did it in a hour. Right now, you can get a comparable house for under $200K. You could probably rent it out for $1,200-$1,600, depending on how much work you want to put into it and exactly where it is and what you want to deal with for tennants (multiple families can pay more, but do you want that in your rental?). If you put 20% down and have excellent credit, you could break even if you can find something that just needs a little cosmetic work.
Even I (a long-time uber-bear) am being tempted by a few things in O’side and Escondido (for rentals). After waiting for so many years, it’s very difficult to sit on one’s hands and wait when we see stuff that just might make sense — even though it will very likely get worse.
If you aren’t picky about where you live, you can buy today with fairly mild downside potential. This is why you’re seeing the sales volume pick up. I think the downside for **sales volume** is pretty limited from here on out. What’s left is the price drops. 🙂
