Posted by David Krulac on March 28, 2001 at 21:18:24:
a. what the interest rate is or the cost of financing. at 6% interest a rental is more attractive than at 15% all other things being equal
b. what are other expenses, like who pays the utilites.
the answer is to figure out the cashflow, positive or negative after paying all expenses and if you are comfortable with that number then go for it.
In the alternative if in the $165K price range you can’t make money look in another price range like $120k or $90k. Usually as the prices go down the returns go up!