02-13-2017, 02:01 PM
(02-13-2017, 01:32 PM)nms Wrote: Since these rents are likely tied to mortgage payments, I doubt that an investor-owner is going to be willing to lower their prices.
No landlord wants to rent for less than $[mortgage+maintenance], but if there really is a supply glut coming, then it's preferable to a vacant unit earning $0. Also, there's a bit of wiggle room, since an investor is also counting on capital appreciation. Renting for less than $[mortgage+maintenance] can still be profitable in the end, but you're effectively sharing the capital gains with your renter.
Again, this is based on the premise that there really is a supply glut in the future. If not, then there will be no problems maintaining rents at $700/bed.