Painter said when Town Homes of Cape Haze "originally came out, guys were talking about selling units for $500,000. Now the price is in the $250s -- and not a single resale yet."
Most new condos, he said, were purchased to generate rental income.
"They're getting $1,200 a month in rent, tops," Painter said. "It's hard to keep a cash-flow property when you paid $500,000 and can only get $1,200 a month rent."
Plenty of condos might be rental units now, but I seriously doubt most of them were "purchased to generate rental income." Rents remained low as prices skyrocketed and no one thought rents would cover mortgage costs. They were bought by flippers who thought they'd cash out quickly.