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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If anything I think rental prices are too low. I have many neighbors who are renting for less than their mortgages [/quote]

No that just indicates they overpaid. Rentals are getting harder to fill, every tom dick and harry aspire to be real estate tycoon with income producing assets.

Hint if rent is less than mortgage its  not income producing. Instead everyone gambling on appreciation. [/quote]

Also could indicate a shorter term mortgage, say 15 year. Negative delta between rent and mort. on one house doesn't, or even a few, is pretty insignificant.[/quote]

True but this is a theme for many people I know who rent out. They only lose a few hundred a month from the mortgage (let alone other expense) yet think it is a great long term investment.

It's like if you bought a dot.com stock with monthly dues!

Yes odd financing can make it harder to cover monthly nut, but pp was saying rent was too low so I assumed she was referring to standard case. [/quote]

A 5, 10 or 15 year mortgage is not odd financing for an investment property - rather it is typical. Non-sophisticated RE investors approach investment property like 2nd homes and take 30 year amort loans - often bc of capital restriction as well as not understanding RE investing. Just FYI.[/quote]

It's true that those types of loans are typically used in big time commercial real estate. But do small time landlords who might only own a few properties or a small apartment building also use a 10 year balloon loan? It seems like it would be tough for a small time investor to swing that. He definitely wouldn't be covering his monthly payment with the rent roll.[/quote]

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