The unknown variable is how many condo’s will be tossed into the rental market? There is an absolute glut of new, unsold condo’s with more being built because the projects were already too far underway when the housing market crashed. Someone posted a list from SD Lookup yesterday that showed 85 newly foreclosed condo’s, with the overwhelming majority being in downtown. With the huge number of ARM’s resetting to much higher payments for the owners over the next two years and with ever-decreasing values of their properties, the foreclosures will grow at a tremendous rate and you’re going to have a lot of competition for available, qualified renters. This problem will not go away quickly. The bottom line is that you’d better factor in all of these problems when you calculate how much you can realistically get for rent on a condo if you want to attract and keep a paying renter. This could severely affect your R.O.I.
