a new investor pays less for a property, he/she will be able to afford lower rents to make up positive cash flow.
One or two properties sold for lower, will not affect anything. But if it is the trend, meaning the new owners more likely rent them out for less.
miat42, lower housing price leads to lower rents, because
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You have good logics. But you missed one important factor
-miat42-
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12/19/2007 postreply
19:35:37
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But in the past years, almost everyone who got fair credits
-mnosense-
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12/19/2007 postreply
21:41:44
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Zero housing price, $10000 rent were also possible.
-山高月小-
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12/20/2007 postreply
06:16:25
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I suggest that you do some researches yourself:
-miat42-
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12/20/2007 postreply
10:38:19
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good points. Thanks!
-mnosense-
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12/20/2007 postreply
12:54:42
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On the contrary, usually lower Price - higher rent
-SZHOU888-
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12/19/2007 postreply
19:54:37