Quote:
Originally Posted by Sly
Wouldn't that be highly dependent on the market? I couldn't imagine doing 15% in San Diego. Even 25% would be tough I think.
Fairly decent house is $450k. Take off 15% and you're getting a loan for around $390k. What's the mortgage on that, about $2700-3000? The rent on my place is $1850 monthly, it would sell at around $450k.
Take off 25% and you're still looking at a $300k loan. Mortgage around $2000-2300.
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Rent and what someone paid for a house don't always match with each other. Many people LOSE money on monthly rent in areas they know are going up in value. And many people make 100% in rent on paid off properties - some where they might have bought it at 10% of what similar places are currently selling for. The market dictates the rental price, not always the price of the property. Renters couldn't care less what you paid for the house if the one next store is renting for less.