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Ren
Participant[quote=Nor-LA-SD-guy]
We have been on the hunt for a rental property, I can tell you the realtors who deal with foreclosures in the T.V. are swamped, whenever we are on the road looking (on the weekend anyway) the agent hardly ever needs to unlock the lockbox, we just follow the agent and group ahead of us then hand the keys to the next agent coming in.
In the realtors office there is constant traffic in and out and we usually need to wait for a free conference room to write offers etc…
[/quote]We are doing the same, and despite the seemingly great positive cash flow deals out there now, we’re being extremely careful and may hold off until next fall/winter. Craigslist is flooded with rentals and rates are dropping. It wouldn’t surprise me to see them drop 10-20%, so I’m figuring that into my calculations.
Participant[quote=Nor-LA-SD-guy]
We have been on the hunt for a rental property, I can tell you the realtors who deal with foreclosures in the T.V. are swamped, whenever we are on the road looking (on the weekend anyway) the agent hardly ever needs to unlock the lockbox, we just follow the agent and group ahead of us then hand the keys to the next agent coming in.
In the realtors office there is constant traffic in and out and we usually need to wait for a free conference room to write offers etc…
[/quote]We are doing the same, and despite the seemingly great positive cash flow deals out there now, we’re being extremely careful and may hold off until next fall/winter. Craigslist is flooded with rentals and rates are dropping. It wouldn’t surprise me to see them drop 10-20%, so I’m figuring that into my calculations.
Participant[quote=Nor-LA-SD-guy]
We have been on the hunt for a rental property, I can tell you the realtors who deal with foreclosures in the T.V. are swamped, whenever we are on the road looking (on the weekend anyway) the agent hardly ever needs to unlock the lockbox, we just follow the agent and group ahead of us then hand the keys to the next agent coming in.
In the realtors office there is constant traffic in and out and we usually need to wait for a free conference room to write offers etc…
[/quote]We are doing the same, and despite the seemingly great positive cash flow deals out there now, we’re being extremely careful and may hold off until next fall/winter. Craigslist is flooded with rentals and rates are dropping. It wouldn’t surprise me to see them drop 10-20%, so I’m figuring that into my calculations.
Participant[quote=Nor-LA-SD-guy]
We have been on the hunt for a rental property, I can tell you the realtors who deal with foreclosures in the T.V. are swamped, whenever we are on the road looking (on the weekend anyway) the agent hardly ever needs to unlock the lockbox, we just follow the agent and group ahead of us then hand the keys to the next agent coming in.
In the realtors office there is constant traffic in and out and we usually need to wait for a free conference room to write offers etc…
[/quote]We are doing the same, and despite the seemingly great positive cash flow deals out there now, we’re being extremely careful and may hold off until next fall/winter. Craigslist is flooded with rentals and rates are dropping. It wouldn’t surprise me to see them drop 10-20%, so I’m figuring that into my calculations.
Participant[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]
Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.
It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂
Participant[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]
Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.
It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂
Participant[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]
Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.
It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂
Participant[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]
Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.
It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂
Participant[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]
Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.
It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂
Participant[quote=asianautica]Personally, I think when your PITI w/20% down = rent, you’re already at equilibrium point. … If it’s cheaper to buy vs rent, then you’re already doing better than rent.[/quote]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
Participant[quote=asianautica]Personally, I think when your PITI w/20% down = rent, you’re already at equilibrium point. … If it’s cheaper to buy vs rent, then you’re already doing better than rent.[/quote]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
Participant[quote=asianautica]Personally, I think when your PITI w/20% down = rent, you’re already at equilibrium point. … If it’s cheaper to buy vs rent, then you’re already doing better than rent.[/quote]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
Participant[quote=asianautica]Personally, I think when your PITI w/20% down = rent, you’re already at equilibrium point. … If it’s cheaper to buy vs rent, then you’re already doing better than rent.[/quote]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
Participant[quote=asianautica]Personally, I think when your PITI w/20% down = rent, you’re already at equilibrium point. … If it’s cheaper to buy vs rent, then you’re already doing better than rent.[/quote]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
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