[Porsche-O-Phile]

Originally posted by Wayne at Pelican Parts
Nope, not the smart one. The CAP rates for California here are so bad that you could easily sell the property, put the money in Treasuries, and make the same amount or more per year with zero risk.

The place I'm renting sold for $880K to the current owner in September. I'm paying $2950 in rent each month. Prop taxes are 1.1% or $800/mo. If this person paid cash for the house, then their ROI on this investment is a scant 3%. Even if they didn't pay cash and financed it, with the cost of money at well above 5%, there is no room to make any money. Considering that prices seem to be flat or declining, it's silly to own property in California at this particular time.

-Wayne

I'm printing this post out and putting it on my wall. It'll be better than Zoloft for making me feel better about the current situation. Thanks for that.

Well-put.