Your equating owning investment property as the same risks as bonds. It isn’t. With a GRM of 13, you’re looking at 7.5% return. With CD’s yielding 5.5% that would be an extremely poor risk adjusted return.
Yet, even with a GRM of 13, the OP’s original condo renting at $1050, would be worth $163,000 $1050 x 12 x13. At $189K he’s at a GRM of 15, at $219K – $240K the owners are at 17-19.
A condo at $1500 / month with a GRM of 13 would net $234,000. If there are concerns the property won’t appreciate, there are significant HOA fees, vacancies increases, that goes down. With low investor mortgage rates or lower risk free rates, it goes up.
When I said condos won’t compete at over $200K, I already allowed for the premium that SoCal prices into properties.
