Tax deduction, I get, about $1300/month (assuming you're in the 37% tax bracket and 1.1% property tax rate)
The 37% tax rate is pretty high for the demographic in Mira Mesa, don't you think ?
All I know is that rent for these house last year were on average about $100/month cheaper and these rental are getting snapped up pretty quickly.
This is a temporary situation because: there are all of these houses that are being foreclosed & but have not become rental properties. In other words, the rental supply is artificially low.
I'd love to know how you come up w/ the $200-250k # as the bottom and which interest rate you use. Since at today's rate, you're talking about P+I = $960-1200/month
1. A couple of years from now, rents for these houses would be around $1500 – 1600 (because of the increase in rental supply & the impending recession).
2. There is an old saying: "excessive things correct themselves excessively". Translation: Not only that prices will go down to levels where they are "justified by the fundamentals (i.e. rents)". Just as prices "overshot" on the way up, prices will "overshoot" on the way down.
