3 ms·
Things I learned from Donald Trump: In most markets, rental properties are not profitable. Almost all of the profit comes when you sell the building, from appr
by debacle 8y ago
Things I learned from Donald Trump:
In most markets, rental properties are not profitable. Almost all of the profit comes when you sell the building, from appreciation. If you're breaking even on a rental, you're actually ahead of the game.
- grogenaut 8y agoHeck, it doesn't really even have to appreciate... If the rental is done right you are having someone paying off the mortgage. It's just deferred income. I'm stuck with a rental where I used to live. I am under by $70 / month with the rent I'm giving but that parlays into $550 being paid a month on my principal by the renter. $550 for $70 isn't bad return. I'm not selling it because it's 3 years from paid off and it's in a slow mover location (would be on the market for 6-8 months). So I'm just waiting until I'm making $550 a month instead of the bank. Or I could sell it and get the sale price out of it once it's paid off. Which would be 18 years to make $120k on 15k. I probbably should have sold it long ago but $70/month is like internet.