When do Rental Prices fall

[Carlos Silva]

Do rental rates usually fall when interest rates increase and home values decrease?

[John Underwood]

Quote from @Nathan Gesner:

Quote from @John Underwood:

It is tied to supply and demand. 

Demand drives prices up.

I pay cash for houses so interest rate has no bearing on the rent I charge.

You're too young to pay cash for houses. Use the power of leverage, man!

Assume a house costs $200,000 and rents for $1,500. The market appreciates 3% per year.

Pay cash for one house and rent it for $1,500. After five years you'll have earned $90,000 in rent income and gained $34,000 in appreciation.

Buy four houses with $50,000 down on each. Mortgage payment is $1,000 on each house, so you're essentially earning $500 per house or $2,000 a month. After five years you'll have earned $120,000 in rent income and gained $136,000 in appreciation. You've earned $132,000 more by splitting your money and leveraging it.

 I am paying 6k to 50k for properties.

Just bought a Mobile Home and land for 6k.

Bought 3 houses for under 30k (tax sale)

Bought another house in my ROTH IRA for 50k in a $300/sqft ARV neighborhood.

I don't need leverage at these prices.