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.
@realmatt_re It is simply taking the total cost of the loan plus realtor commissions if you sell the home and increasing the value of the home at a historical pace. Nothing too hot. Nothing too cold. Just average gain in amortization. And this is without ever refinancing to a better rate