You have good logics. But you missed one important factor
Thursday, December 20th, 2007The factor you missed to consider is that all investors are greedy. They will always try to rent the house using market rent. They will not base rent on their mortgage payment. For example, if their P.I.T.I (Principla, Interest, Tax and Insurance) is $1400/month, they will not rent out at $1400/month. They will always check with MRIS to get the market rental rate, currently $1700/month. They are happy to retain the profit of $300/month. In some cases, in order to increase competitiveness, the investors can reduce rent by 50-100 to rent out. However, not everybody will do so.
investment property