Will recently purchased house ever be cash flow neutral as rental?
Feb 8
28 Comments
Bay Area specific.
Mortgage and tax to rent ratio is almost 2:1 at current elevated prices. It will take decades for rent to catch up. Would this discourage investor from hoarding second homes and renting out in future? People who got in earlier obviously could but everyone who bought recently missed that boat.
How many are willing to own cash flow negative rental?
comments
Current houses are 2M+ and rent is 5k
Or have deep pockets, pay huge down payments, and view rent as debt service maintenance while you sit on properties and sell later to make money on the back end.