The 3% swing in interest rates is offset by the market psychology and media.
I thought the psychology and media is pretty bad at the bottom of the last cycle? Isn’t that the definition of bottom, is when every average joe say not to buy?
I guess only time will tell if we will see 125X rent multiple again. If interest rate goes through the roof, we might see lower than 125x multiple I guess. That’s just my point. @ 250k w/ 20% down & 6.25%, your PITI – tax deduction should be about 1200/month. If you can rent it for 2000/month, that’s a 19% yearly return on investment from the very first year. That seems too good to be true as an investment because that 19% can only get bigger from there. If you go w/ a property manager, then your profit would drop to around 17%, but that still seems too good to be true.
