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So you're saying that investment property owners are rare and bank foreclosures are increasing? Wouldn't that create a shrinking pool of landlords and a rising pool of tenants? If so, rents should be, or will soon be, rising, right? SM

I got this one. If you buy a $100,000 house as rental property, and pay 10% down, you might pay 7% on your money, or 7% of $10,000 or $700 a year in interest on a borrowed downpayment. Even if you don't borrow it, that is the opportunity cost. However, assuming that your tenants are paying...

I said it. Its not a direct payment, like some kind of invoice that is mailed to them. But its bundled up in their rent, along with all of the other costs. There is no free lunch. The mark-up is the profit which motivates the landlord to buy the property in the first place. If property...

Tenants pay the property tax, plus a mark-up.

Ok, you have me confused. We are talking about the long-term, right? Not just today? Sure, there are going to be periods of time where the rents in areas like California or on the beach are half of the payment. But those are times right after a run-up in price. See...the value of the home...

I think it would actually work the other way. Assuming that the average tenant pays 85% of the payment, then he would only have four years to invest before the homeowner's payment would be less than the renters due to inflation. So the owner would have 26 years to invest his savings which...

Oops. Forgot to mention that at that end of the 30-year period, my father in law owns that house free and clear. His net worth is $400,000 greater than if he just rented. I'd really like to see the assumptions in the spreadsheet that started this thread but I couldn't download it.

Bingo! The weighted average of the percent of income was 20% over that time period. Then you get to factor in the tax advantage, but admittedly you have to subtract out maintenance. For a renter, their payment would remain about 85% of what a new home owner would be expected to pay, so...

True. But he agreed to pay many less dollars way back then that he would have to agree to pay today to get one. The decreased number of dollars offsets the higher value of those dollars. And if he'd have rented this whole time, he'd have paid out way, way, more dollars over that time period.

Have ya'll factored in that rents climb with the rate of inflation, but mortages on fixed rates stay pretty flat. My father-in-law makes payments on a $400,000 house at a rate of about $200 a month. Can't imagine what the rent would be on it today. SM

Oops...forgot to say our "P/E" is 11% before expenses but also sans leverage. I did get a good deal though. Even at market price the P/E is around 8% and the guy who bought the rest of the complex is flipping them at that price. I'm loving this real estate stuff. SM

Here's some interesting anecdotal statistical stuff. I advertised a 1 BR/1 BA by putting a sign along side the road out in front of the development. Not really a busy street, but not a residential street either. Anyway, I got 5 inquiries in one day to rent it. And we're in the slow season...

Realtors see lower US home sales 2 hours, 46 minutes ago WASHINGTON (Reuters) - The National Association of Realtors on Tuesday lowered its forecast for U.S. home sales in 2006 and called on the Federal Reserve to stop raising interest rates because parts of the housing market are...

So is it a fair statement to feed the bears and tell them, "you were right, the bubble burst" and then say, "but the bubble was pretty small"?

Wow. That really is kind of scary...even for a housing bull like me.

I'm not chartist...but... Did you notice that that rate slope from peak to peak, or trough to trough is changing...and how it is changing? View it from the perspective of rate of change, or (if you remember your calculus, the derivative, and the derivative of the derivative. The rate that it...

And then Bush said, " We don't need you to improve our economy. Have you ever heard of Area 51? Maybe you weren't cleared to read the classified documents, but we have recently procured a gold making machine from them there spacemen. ahee hee hee. The spacemen are working closely with us, on...

Wareco, you da man! Thanks for the great data and great link. I didn't think I was imagining an improvement. I've been seeing the signs (or rather, a lack of for sale signs) We may be the exception to the rule nationally, or maybe we are on the leading edge of something. Will this start...

Hey, look at a map of Florida and see where Tallahassee is located. Some folks joke that it is Tallahassee, Georgia. The market here is *NOT* like Daytona, Miami, West Palm, etc. It is more like the "flyover" states. I can say I'm definitely bullish on the purchase of rental property...

Tallahassee, Florida for one. I count "for rent" signs in the neighborhoods where I have rentals and in areas adjacent that my properties compete with to get a feel for demand before I try to fill a vacancy. There are consistently less signs up now than last year at this time, and way less...