Using assumptions about median home price, median rental rate, 25 percent down payment and a 30-year fixed-rate loan at 6 percent, it highly recommends three markets for cash-positive investments:
The report also gave an honorable mention to Detroit, if investors can buy at the low end of the price scale, and it emphasized there are good investment opportunities in most U.S. markets right now.
Altos noted in its report that investors should buy property for one simple reason: positive cash flow.
“Even if the value of a property drops to zero, a rented property provides checks every month that pay the mortgage and put some extra dollars in the pockets of the owners,” the report said. “And the value of real estate in the US has never dropped to zero.”
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