The dynamic in Colorado Springs rent vs. buy

[Rob Thompson]

As an example of the dynamic here, I currently have 67 people looking for rentals for $1,000 or less. There are 21 homes in the MLS.

Oh that I had the capital to buy homes -- instant demand. 

Rob

[Jon Holdman]

Paying cash doesn't make a bad deal turn good.  It may result in positive cash flow, but the cash on cash return is too low to be attractive.

IMHO we're now in a purely speculative market.  Buyer's are snapping up whatever they can find assuming prices will rise.  So negative cash flow is OK.  I also suspect there are many new investors jumping in who do not really understand the business and buy the "this cash flows, rent is $1500 and your payment will only be $1200, that's $300 a month in cash flow!" malarky.