09-17-2009, 11:58 PM
mattkime wrote:
[quote=Seacrest]
http://en.wikipedia.org/wiki/Capitalization_rate
yup, but there are few investments where you can take out a big loan and have others pay it off.
You need deep pockets to be a landlord.
Especially in a city with high acquisition costs and tenant-friendly laws like NY.
Plenty of folks bought up "investment property" during the boom, and are now suffering under the weight of high mortgage payments and low rents (not to mention maintenance and repair bills and prop taxes).
When the easy money is not flowing and prices are relatively low is the time to buy, but it's much harder to get financing during those periods.