re: Homes in upper middle class neighborhoods going up for rent

quote:

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Either bought by a big corporation to rent or individual owner can't afford it anymore and doesn't want to lose that low mortgage rate so renting versus selling.

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With housing prices through the roof... People with homes financed at sub 4% rates, renting has a better ROI than selling. A home bought for 300K in 2010 in a decent neighborhood can easily rent for $2500 a month. That's a 10% ROI on the purchase price.

I know there are property taxes and insurance on the structure along with interest, but I think you still ride with an ROI over 7%.