Rental rates going through the roof. Getting a feeling. Is this a "Rental Bubble"
This might sound weird but I just Rented a sfh 3/4br 2ba for $2200 to a professional that has a 3yr employment contract with a local medical center. I have had this property since 1999 and purchased it for 88k back then. This area of NJ is experiencing growth but not industrial or commercial growth just residential growth and actually there are apartments that just were completed that are renting 2 B-Rooms for 2100. That said the family we rented is a quality tenant IMO. That said in the town of my rental I can p/up 3br 1-1 3/4 baths for 150k that need 10k of work and get between 1800-2100 K easy and to be honest it is not the best neighborhood in my county. Is it possible we are in a rental bubble? Is one coming?. 30 yrs of doing this I just am getting a feeling like the same one in 2006. As a contractor I know a 2x4 costs me $2.47 these numbers just do not seem right. Your thoughts...