I’m in TX where property taxes and HOA and home insurance are all really expensive. I’ve been bidding on homes and calculating the all in monthly cost on various sales prices. Recently I’ve noticed a couple single family homes list for rent with monthly payments that are actually $100-200 a month cheaper than if you bought that house today for current market value.
I realize many of these people listing the rentals bought these homes years ago and these rent payments are WAY higher than their own mortgage payments, but still, historically I’ve always felt like rents were NEVER a better deal monthly payment wise than buying a similar sized home in the same condition.
Am I missing something? Are people bidding up the rental payments too so these are just like “list prices” to entice a rental bidding war? If not, it makes way more sense to rent. I can keep my appraisal gap cash earning me good returns while I wait and see where the market goes