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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Lizzie Tudor who wrote (49914)3/10/2006 1:13:11 AM
From: John VosillaRead Replies (1) of 306849
 
Lizzie check to see what stuff you are looking at as a multiple of rent sold for at the last bottom. I can't see the value of buying $600-700k properties that rent for under $2k a month even with a 25% drop.. Rental property should sell at a cap rate of at least 3% over the 10 yr treasury. Interest rates should be on the upswing for years to come. Cap rates of 9%+ are available but I bet not anywhere near your until the coming downturn is near complete.
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