[quote=spdrun]Both conditions:
(a) not being underwater
(b) being able to rent at a profit
should be true to make an owner happy. Being stuck with a rental property would also suck painfully.[/quote]
Most desirable areas, I don’t think ever was or ever will be cash flow positive from day one or even after a couple of years (assuming conventional 20% down). Being underwater only keep you up at night and make you unhappy if you intend to move. If you bought your dream home or a house you plan to retire in, assuming you can truly afford the place, why would you lose sleep over something that won’t affect you.
Yes, being stuck with a rental property that have negative cash flow would suck. But being “stuck” with a rental property that’s under water doesn’t always suck, especially, if you’re cash flowing positive. If you bought a rental that wasn’t cash flowing, then this is a lesson you’d have to learn. But again, you’re only “stuck” if you’re intending to sell.
