Used to. live in this one but used to rent a property but sold it.
How many of you weasels own 2 homes...?
- Thread starter Pablo
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Virtually no one buys a house to rent out ..unless it's at a tremendous discount. Single family dwellings rarely "carry themselves"...neither do two unit dwellings. A three unit is the minimum number to make it work from a value stand point.
I would agree - to buy the house at the current price and rent it out makes no sense.
Pablo,
The basic problem is that in high-cost areas, you cannot charge enough rent to make the numbers work. If you calculate things like return on equity, you are better off in the stock market. The only saving grace is appreciation, but that is iffy depending on location and property type, single family, duplex, triplex, commercial, etc.
On the other hand, slumlords tend to make out because of government subsidies, but the hassle factor is huge.
The basic problem is that in high-cost areas, you cannot charge enough rent to make the numbers work. If you calculate things like return on equity, you are better off in the stock market. The only saving grace is appreciation, but that is iffy depending on location and property type, single family, duplex, triplex, commercial, etc.
On the other hand, slumlords tend to make out because of government subsidies, but the hassle factor is huge.
My mortgage payment isn't so high relative to the (possible) rent...IMHO. (I put a chunk down back when I bought it and RE prices are up quite a bit so my equity is decent)
Yes, they found renters. Two good ones while I owned the house. Both took better care of the outside of the house than most owners would. The second was a sloppy housekeeper, but didn't trash the place. They were the ones that bought it from me.
It was also the magement companies job to get rid of baddies. Fortunately I didn't get a chance to evaluate that part of their job description.
The whole process while I owned the house, 250 miles from home, was made completely painless by the management company.
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