Rents as a % of Purchase Price
Post inspired by another thread that is looking for 1.2% of rents on a 100k purchase.
What kind of rental deals are you finding right now ( staying away from warzones and low c or below class property )? With the influx of dollars into SFR from all directions are you finding it might more difficult to get good rentalsdeals?
I'm having difficulty locally which means either i'm out of touch with rental rates or prices have gone up too much to justify buying here.
Like others on BP i've turned my focus towards Texas and sticking with new to newer construction.
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I can't speak for all investors but some still buy with the intent of super appreciation and curretn negative cash flow. Not a game I want to play. Lots of foriegn investors have dumped money into CA all cash. They get cash flow just because they paid all cash, but low returns. They hope (my guess) is that they get great appreciation to better their returns.
Per my example, I invest here to flip. I obviously don't pay $300k for that house, I pay no more than $225k including repairs for it, then flip it to end buyers (owner occupants) for the $300k+ I get great retruns doing that, of course that is an active biz.