Comment on Life is unfair to landlords
POTOOOOOOOO@reddthat.com 10 months ago
A while ago my wife and I were debating on renting our home out and buying a different one. Just to break even on the house expenses it wasn’t worth it.
Maybe I am wrong, but I don’t understand how landlords make a lot of money unless they don’t fix the house ever.
There’s a couple of ways to make bank. First is to start out rich enough to skip the loan and buy for cash. This is what companies like Blackrock do.
Another is to look out for things like tax auctions to get a big discount. Also you could be friends with a lender and get sweetheart rates on the mortgages.
you make money if you don’t have a mortgage.
I was able to refinance my home at 2.8% during COVID. Now I’m paying less than $2k for a 2200 sqft home. I’ve got neighbors who are paying $4-6k for equivalent housing.
My mom, who bought her home in the 90s, has the mortgage fully paid off and only owes real estate taxes (around $12k annually) on a 5000 sqft property.
A lot of landlords simply inherited their homes or had enough credit to buy cheap units during the dips.
They also do a shit job of maintenance. But it can’t be overstated how much of this property is either owned on extremely low interest credit or fully paid off.
My landlord makes 48k a year off where I’m living. I can easily see how he’s making money.
I think the idea is that even if you only break even after mortgage and expenses, you gain equity in the house and eventually own the house which you then have at your disposal. You can continue to rent it out without the expense of the mortgage, or sell it and cash in.
The landlord I know that makes a shit ton of money inherited the homes from their parents.
Yeah this is it, the ones who aren’t paying a mortgage on the house they’re renting out. That or corporate landlords.
Blackrook7@lemmy.world 10 months ago
Mine doesn’t fix the house ever. And if she does, it’s always with the cheapest bidder.