If you buy 3 homes (and the land beneath it) 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 insurance and 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. If you evict then you’ll end up covering power and water as well. It’s not all that profitable on the small scale, absolutely feels like charity if you’re charging less than $1400.
But the thing is, if nobody buys those homes, then they aren’t on the market for rent. So then where do people live? Luckily, low income housing has become more available across the USA, but it’s definitely not the greatest community to raise children.
If you buy 3 homes (and the land beneath it) 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 insurance and 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. If you evict then you’ll end up covering power and water as well. It’s not all that profitable on the small scale, absolutely feels like charity if you’re charging less than $1400.
But the thing is, if nobody buys those homes, then they aren’t on the market for rent. So then where do people live? Luckily, low income housing has become more available across the USA, but it’s definitely not the greatest community to raise children.