This is the reality of real estate in Sacramento right now: Own the home for $6500+ a month, or rent something equivalent down the street for $3350. Are we betting appreciation outpaces that difference? Seems like a lofty bet to make...
@realmatt_re Based on your numbers, this is how it would break down. So, you'll have to make it to year 3 before it's a net positive but still good to own...
@ScottHevel I think there are too many assumptions being made in these calculations, and I don't see the numbers working out like that for this particular neighborhood. I like the flyer, but would love to see investment income on the downpayment and outlay included for the renter.
@ScottHevel @realmatt_re Goddamn that's some nuclear math.
@ScottHevel @realmatt_re Assuming a 5.32% average per year forecasted appreciation completely invalidates your analysis. For 100+ years of 130 years of data, house prices have had a ~.25% real rate of return. longtermtrends.net/home-price-vs-… Yet somehow, houses are supposed to mostly keep up with the SP500?