Investors still waiting for lower prices?

Do you have investors who can't seem to pull the trigger in this environment of declining prices?  First of all, they are right to be concerned.  Second, you may be able to identify a previously under-appreciated or ignored aspect of real estate investing - positive cash flow!  Real estate prices have declined enough in some areas that it costs considerably less to own than to rent.

http://www.trulia.com/blog/rudy_bachraty/2010/06/new_trulia_real_estate_index_rent_vs_buy

If you study the cost to rent vs. the cost to own in some of your neighborhoods, you might be surprised.  If renting costs quite a bit more, investors might very well accept the prospect of declining prices (negative appreciation as it were), when they see that they can earn significant positive cash flow.  If they have a long investing horizon, they might accept to wait 10-15 years for appreciation and be content to receive a stream of cash until then.

Jeff L