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If you own seven apartments with an average rent of $1k, your yearly revenue (not profit!) is $84,000. That's microscopic by any reasonable standard of company

If you own seven apartments with an average rent of $1k, your yearly revenue (not profit!) is $84,000. That's microscopic by any reasonable standard of company size.

user5994461 9y ago
Depends where you are located and what kind of apartments it is. The average rent in whatever is somewhere around 50% of the income, so if you own 3, you don't need to work.
- saimiam 9y ago
  Let's assume average income = x So, rental income from 3 houses = 1.5x Even if we assumed that all three homes were owned outright, you'd be on the hook for property taxes, maintenance, and utilities for each house. About half of my monthly expense minus mortgage is on these three line items. Therefore, 1/2 of 1.5x goes straight to property taxes, maint, utilities leaving your income at 0.75x. You have to pay your own rent/expenses out of this. Living off renting isn't foolproof at the levels you suggested.
  - user5994461 9y ago
    Living off renting is 100% foolproof with 3 properties. You don't have to pay rent when you own your property. I don't know if you said "houses" on purpose. Houses are going for more than 0.5 income.
    - saimiam 9y ago
      How can you rent out 3 properties while living in one of them?
      - user5994461 9y ago
        Assume that someone who rent 3 properties also have a place they live in. Can be a 4th property. Can be that 1 of the rental is simply an independent floor in their 4 stories house. Either way, if you own at least 3 properties you can have enough income to live.
- 1812Overture 9y ago
  Rent in an area is generally considered excessive when it's more than a third of the average income. And it also has to cover taxes, maintenance, etc. This is assuming you own them free and clear with no mortgage. If you finance buying a small rental property you're usually losing money each month for a few years until rents go up enough to cover your costs.
ricardobeat 9y ago
Vacation rentals earn a multiple of long-term rental rates. AirBnB average in NYC is reported to be ~5500/month, so 462k/year for seven properties.
- 1812Overture 9y ago
  Probably paying $3k in rent for each of those apartments, $300 in utilities and cable, $800 in cleaning/laundry/expendables, plus probably budgeting $100/month to cover the faster than average wear and tear. So $109k/year in profits pre-tax. You could live on it, but you wouldn't exactly be rich.

If you own seven apartments with an average rent of $1k, your yearly revenue (not profit!) is $84,000. That's microscopic by any reasonable standard of company size.

user5994461 9y ago

Depends where you are located and what kind of apartments it is. The average rent in whatever is somewhere around 50% of the income, so if you own 3, you don't need to work.

saimiam 9y ago
Let's assume average income = x So, rental income from 3 houses = 1.5x Even if we assumed that all three homes were owned outright, you'd be on the hook for property taxes, maintenance, and utilities for each house. About half of my monthly expense minus mortgage is on these three line items. Therefore, 1/2 of 1.5x goes straight to property taxes, maint, utilities leaving your income at 0.75x. You have to pay your own rent/expenses out of this. Living off renting isn't foolproof at the levels you suggested.
- user5994461 9y ago
  Living off renting is 100% foolproof with 3 properties. You don't have to pay rent when you own your property. I don't know if you said "houses" on purpose. Houses are going for more than 0.5 income.
  - saimiam 9y ago
    How can you rent out 3 properties while living in one of them?
    - user5994461 9y ago
      Assume that someone who rent 3 properties also have a place they live in. Can be a 4th property. Can be that 1 of the rental is simply an independent floor in their 4 stories house. Either way, if you own at least 3 properties you can have enough income to live.
1812Overture 9y ago
Rent in an area is generally considered excessive when it's more than a third of the average income. And it also has to cover taxes, maintenance, etc. This is assuming you own them free and clear with no mortgage. If you finance buying a small rental property you're usually losing money each month for a few years until rents go up enough to cover your costs.

ricardobeat 9y ago

Vacation rentals earn a multiple of long-term rental rates. AirBnB average in NYC is reported to be ~5500/month, so 462k/year for seven properties.

1812Overture 9y ago
Probably paying $3k in rent for each of those apartments, $300 in utilities and cable, $800 in cleaning/laundry/expendables, plus probably budgeting $100/month to cover the faster than average wear and tear. So $109k/year in profits pre-tax. You could live on it, but you wouldn't exactly be rich.