5 ms·
If someone is getting $1500 /month rent for their $100,000 house, then reason #1 to own a house is "Rent it out, and get 18% p.a. returns on it"
by alex_h 16y ago
If someone is getting $1500 /month rent for their $100,000 house, then reason #1 to own a house is "Rent it out, and get 18% p.a. returns on it"
- leviathant 16y agoMy wife and I didn't sell our first house when we moved, we're prepping it to rent out. It was a serious fixer-upper, so we renovated the bejeezus out of it while living there (learned a lot and bought a bunch of tools). Average rent for a property that size is easily double our mortgage payment - which is why we bought instead of renting in the first place. Even factoring in taxes and maintenance costs, renting out that first house, even at the low end of what we could get for it, we'll handily subsidize our current residence as well as pay off the old house. Even if we were to sell it, the quality of work we put into it more than pays for the time and money we put into renovations. To each their own I guess.
- kgo 16y agoAny good investment plan involved diversification. If you buy one house, one bad tennant could mean six months or more of no rent payments while you go through the eviction process and try to get someone else in there. One really bad tennant could cause tens of thousands of dollars of damages.