Quote:
Originally posted by HardDrive
I am in Seattle.
I look at what people are asking for property, and I don't see how the rents will cover it.
Perhaps building is a better option?
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You're exactly right, your rents won't cover your mortgage, taxes, etc. I bought a condo 5 years ago at pre-const. pricing. It's gone up considerably. But, rents have gone down. So, every month, I take a loss on cash flow for this property. But, property values are still increasing. As long as that still happens at a good enough rate, I'll continue to rent. I also get tax advantages for a loss on my investment. So far, for me, it's working out ok. I'm guessing Seattle isn't too different than the Chicago market. As interest rates go up, and buying flattens out, rents will go up too.