How do people make money buying and then renting a house?
I can’t find the answer anywhere. No book author discusses it. Authors only try to make it sound so easy. No matter how I analyse it, it seems impossible. Costs are always higher than what you get for rent especially if you buy “with no money down”. There’s utilities, property taxes, repairs and of course the mortgage. Finally, you have to pay taxes on the extra income. You can only charge so much fo rent. Rental income only outweighs costs if you put down a huge downpayment so how are people making money?
If anyone can explain it to me, I salute you!
I have been a landlord in my past, i might be once again i don’t know,
It is WAY tougher than carleton sheets or russ whitney will tell you that it is.,
The only people that are making renatl income are ones who
1. bought there property like 15 years ago for a much cheaper price today and have much lower mortgage payments than if you were to buy today.
2,.Have excellent tenants,
3. are purchasing the property with atleast 40% down.
you really have to look VERY har d to find the right property, Only maybe 1 out of 80 is possible “good buy” even at 40% down.
Look for properties that have been on the market for atleast 60 days, also properties by owner, know what a starter house sell for in the area, Then offer them like $12,000 less than what they are asking, or like 7% less than wha tthey are asking, the works that sould happen is they say no, then y9ou go onto the next house.
Keep pin mind though that the interest on the mortgage is tax dudectable, can help at tax time.
Do your homework before you buy casue real estate agents don’t care if you make money, they care if they make money, be stubborn about what properties you are going to buy.
No Money Down Real Estate Deals
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