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If all that inventory out there never gets sold off and converted to rentals also.
Anyway, I heard rents there are pushing down to the $800-900/mo range in several areas for 3bd/1ba homes.
Like this:
http://lasvegas.craigslist.org/apa/2863853997.html
or this:
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There are 157 HUD Properties selling below $90,000 that can rent for $1000 a month, giving the investor 13% to 15% ROI if you get 10% down investor financing thru HUD.