Well, the “better” markets are the last to fall. And they generally don’t fall as hard. So, we’ll see.
On a slightly different topic, I believe you mentioned in a different thread that you were seeing foreclosures that would cash flow. I haven’t seen this, although I am now seeing properties – mainly in south San Diego – in which the rent would cover the mortgage (and HOAs) with conventional financing (20% down). In fact, there are more than a few of these now. But this is relatively recent, as in within the last two months.
But I still haven’t seen anything anywhere that would cash flow after taking into account maintenance, vacancies, etc. But at least rents that cover the mortgage is a step in the right direction.
Have you seen specific properties where the rent would cover the mortgage AND all operating expenses (including vacancies), which generally eat up 25%-35% of rents?
