[quote=temeculaguy](…) this is exaclty the scenario to look for, when it is cheaper to buy than rent without factoring the tax rammifications, then you are there.[/quote]
My wife and I are doing exactly that: we can’t afford to rent the house we’re proposing to buy. OTOH, is has been 2 months since our offer went in on this !%#^@!&%$ short sale, and we’re not in escrow yet. Still, we actually heard back from the bank yesterday, and it looks like it will go through barring a massive termite invasion, etc.
If push came to shove, we could rent it out for c. 20% more than our all-in costs (P&I, taxes, water/sewer, trash), so it’s not likely we’ll end up having to realize what I’m convinced will be a 10-20% paper loss over the next several years.
Condos pencil out even better in some parts of town IF–and it’s a big IF–the HOA is solvent and they haven’t been deferring maintenance for decades.
