If you buy 3 homes for roughly 300k USD, which is a very very low estimate, on a 15 year loan and pay more than 4 or 5% interest then you need to make 2,219.06 to 2,372.38 a month for the minimum payment before figuring costs of maintenance like painting, doors, replacing heat tape on water lines, sometimes replacing entire walls, windows, fixtures, or insulation, pest control, roofing every couple of years. You also have to pay estimated taxes every quarter. If one of your homes sits empty or your renters are late then you are at a deficit. It’s not all that profitable on the small scale, absolutely feels like charity if you’re charging less than $1400.
Comment on Don't forget to tip
gsb@lemmy.world 11 months agoI agree that not all landlords are bad (and not all tenants are good) but I have a hard time believing anyone becomes a landlord to “provide homes to families”. It’s an investment, a source of income.
doctorcrimson@lemmy.today 11 months ago
Krauerking@lemy.lol 11 months ago
A majority of the white collar people I work with brag about how many homes they own and rent because it’s the best investment they ever made without having to put much work into it. One of them rents out his deceased mother’s house left to him in a will for $9000 a month to a family of like 12 with 4 generations in it and it’s only like a 4-5 bedroom house.
He isn’t doing it to provide he’s doing it because it’s good money. Stocks don’t get you that instant cash back like renting does.
God I hope it’s a bubble and I hope they all end up destitute trying to sell the houses. I don’t even fucking care if I get it worse, I can’t compete, and they all have like 3+ houses a piece.
doctorcrimson@lemmy.today 11 months ago
Anecdotal evidence and strawman
Krauerking@lemy.lol 11 months ago
Sure my direct acknowledgement of it is anecdotal but it doesn’t change the fact that first time home buyers are way down and people buying property for investing are practically an all time high. In Canada investor buying is a third of all house purchases and at best they will rent for additional profit.