For years I have had clients ask me if there are any residential properties for sale that would be a "Break Even" scenario. My answer would be something like - "if you put 50% down".
Market Rent is 1% of the property value, is the rule of thumb I used to tell clients 30 years ago. You can "Break Even" then. But over the years selling prices quickly increased and grew faster than rental values. So, the answer has basically been NO. Recently, if asked I would say that the rule of thumb market rent was 0.5% of the property value.
The current economy has changed all that. Our real estate market with low property prices, low interest rates and healthy rental returns have opened up windows of opportunity for small investors to break even and even have cash flows again. This is even true in the Lake Arrowhead community that I love and serve. You can search listings in the Lake Arrowhead and surrounding communities at my exclusive public portal http://rolfserve.com/mls.htm. You can also view comparable rents at this link: http://arrowheadrent.com/rentallist.htm. When I do the search right now, I see about 20 properties that stand out. For more information about these listings and opportunities contact mailto:LakeArrowheadAgent@earthlink.net
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