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[quote=Anonymous][quote=Anonymous]The rule of thumb is if you can rent it for 1% of the purchase price, it's a good deal. I haven't found anything on the market that meets that requirement. I bought a place a few years ago that breaks even (a little better some years, a little worse when something major breaks) and would have done better in the stock market...and that was with a much lower interest rate than you'll get today. It did ok financially when I had a tenant with a section 8 voucher in there, but the stress of this particular tenant was such that I was glad when they moved, even though the market had softened after that and the next people paid less rent.

Also, are you prepared to do your own maintenance or have you built 8% for property management into your model? Do you understand landlord-tenant law enough to know when you need to hire a lawyer (hint: you almost always should hire a lawyer--I have represented people in landlord-tenant court and I still hired a lawyer for some things)? Are you prepared to evict people when needed? [/quote]

So a million dollar house should rent out at 10k a month? Doesn’t seem realistic. [/quote]

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