Two things I can think of: 1) it was a typo for $50k which is a reasonable number. The house down the street from me just sold for $55K and reasonable rent for

Two things I can think of: 1) it was a typo for $50k which is a reasonable number. The house down the street from me just sold for $55K and reasonable rent for it is $650 in the neighborhood. My house was a bit more (housing boom) but I will easily be able to get $900/mo in rent for it (nicer inside), and I am only paying $530 on it. Just need to find another house to upgrade to. 2) the 5000 purchase means closing costs/fees/etc on a house with a 100% mortgage, and in a lot of places the rent can easily be $500 more than a mortgage. The best places to find things like this are college towns, because there are always lots of renters. The example of my neighborhood is based on the fact that there are a pile of grad students living here.