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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
by 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 agoLet'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 agoLiving 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 agoHow can you rent out 3 properties while living in one of them?
- user5994461 9y agoAssume 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 agoRent 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.