On this topic, there are several places in my complex that pull rent of 1100/mth and are for sale for 135k. The HOAs are 233/mth. This means that the effective rent is 867/mth. At full asking that is a 7.7% return. At 110k that is a 9.4% return. The last one to close (an REDC auction) closed at 105k. This is about 10% return. While 105 seems low, I think the 110k is where we are headed.
At the current asking prices, we are seeing offers and closings happen regularly.
