The beauty of these crazy low prices is crazy low monthly payments for homeowners that are taking advantage of this nationwide real estate sale. However, the other side of the coin holds a different story for renters and landlords.
When rents are high, investment properties are very profitable, easy income -if you have a management company doing all the heavy lifting of course. However, when rents go down, renters rejoice but your profit margin frowns. Now, with home prices being so low, moderate income buyers can purchase a home for equal or less monthly cost than renting someone else's home. A home they can't paint, remodel, or improve.
Even so, this speaks again to the profitability of buying investment properties only because the overhead is low as well. Then in 5+ years when you go to sell it, you've just made quite a lovely profit.
Check out this link for a Wall Street Journal article that covers the whole issue:
http://online.wsj.com/article_email/SB123552129423664663-lMyQjAxMDI5MzI1NTUyMjUxWj.html
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