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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Travis_Bickle who wrote (63528)10/9/2006 10:57:43 AM
From: John VosillaRead Replies (1) of 306849
 
'Tell me how that is going to work'

Simple. GRM adjusts back to the norm and probably even lower in a tighter credit/higher interest rate environment.

So perhaps the rent goes up 30%+ in three years and the rent becomes $2100. At a GRM of 10 the townhouse would 'adjust' down to the $250k range..
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