>save up like 35-40k for a 10% down payment on a multi-family property >get a mortgage with monthly payments to the bank>rent out the units to multiple tenants>rent prices are high, make sure utilities are not inclusive in the rent>make like 5-6k (if not more) on a month on a 2-3k/month mortgage>have 3k profit every month>only have to worry about property tax and some maintenances>once mortgage is paid off, sell the now greatly appreciate unit and liquidate for 700k>buy your retirement home or do whatever you want with the moneyWhy dont more people do this? You can even just use the monthly profits from your renters to purchase even more properties and continue the same process
>>84909635Because I am the renter working a wagie job but maybe I will do something high iq like this if I ever have children
I spend all my money on findom
it's called rent seeking and only subhumans do it. if you have to ask why then you're subhuman. simple as.
>>84909635>>save up like 35-40k for a 10% down payment on a multi-family propertywhere the hell are you buying properties? rural north dakota?
For the record, Im posting this cause I seen a 3 family/unit triplex property for 350k. The annual property tax was below 3k, and the down payment for a mortgage would be 35k (which I could have afforded). Average rent where I am is say 2500 for these sorts of units (3 beds), plus I would make them pay their own utilities. That is 7500 a month on a sub 3000 mortgage; like wtf. I can just have others literally pay for my real estate investment. I was considering it but the property sold in less than a few days and I would obviously want to inspect the condition before buying. I also think there are laws in my country/province that fuck landlords and protect shitty tenants
I'm afraid of dealing with people and/or possibly losing my money on the deal (no tenants or any other possible unforeseen circumstance). Will the bank give a mortgage based on the future rent income or do you have to be able to afford it?
>>84909672>3 family/unit triplex property for 350k. The annual property tax was below 3ktrying to be a landlord in some burnt-out Detroit slum is a hard sell
>>84909686A 10% down payment (or more) is a good start, but the bank is not stupid about how or who they loan to. You have to be able to leverage your loans against something or have some form of available collateral so the bank takes less risk. I dont think they would put much faith in future potentials unless there is some current form of guaranteed repayment ability
>realize my landlord has no idea what he's doing>stop paying rent>sell the appliances>scrap the plumbing and wiring>punch holes in the wall because fuck him
>>84909700I live in Canada, the city I would buy this property in is actually growing because of paki influx. I would just rent to students because from what I hear they are actually good for meeting their financial obligations and have less protections so they kind of have to do it if they wanna stay here.
>>84909635why in the heck would a bank let me take out a mortgage
>>84909739Cause they wanna make interest on your loan, same reason every bank wants to lend money
>>84909635Because in reality, in most real estate markets you're barely making money on rentals. The profit margins are not nearly as huge as you're assuming. Renting is really a method of holding onto an asset while having someone else pay for the mortgage, usually in exchange for the increased physical depreciation of the house because tenants are nightmares.Landlording is a leech's game>t. went to real estate school and spend a lot of time around real estate industry guys
>>84909801>Because in reality, in most real estate markets you're barely making money on rentals. The profit margins are not nearly as huge as you're assuming.How can this be the case, though? I did the math, average rent for similarly sized housing units in my region is actually 2600/month, but I was willing to do 2500/month + utilities (don't wanna get fucked by tenants using lots of energy or changing utility prices). It's 3 units, so 7500 a month fixed + variable utility payments. Mortgage was 2150/month, so if I do rent them (which I am confident they would have been), that is 5350-a month profit. That is 64,200 annually minus the 6500 property tax so 57,700 a year. i don't think maintenance costs would be that regular of an occurrence. Yes, the idea is having others pay for my asset. I would definitely be very strict about who I rent to and would do my due diligence in prospecting tenants.
>>84909801>Renting is really a method of holding onto an asset while having someone else pay for the mortgageNot really. It's supposed to be just more than enough to cover taxes and maintenance. The ability to make a profit while servicing a mortgage is a symptom of a constrained housing supply.
>>84909635>save up like 35-40k for a 10% down payment on a multi-family propertyA 350k-400k multi-family property doesn't exist.
>>84909856Those rents for that price isn't adding up anon, there must be some sort of repairs that need to be done or it's a bad neighborhood or something. Gross rent multiplier over 20% is very sketch
>>84909726>this retard is going to rent his units out to "students" (actually tim hortons workers) who will sublet the units out to a dozen fellow jeets per unit, who will destroy the interior with curry and feces, and who will have him arrested for racism if he tries to evict themLOLLMAO, even
>>84909866>It's supposed to be just more than enough to cover taxes and maintenanceThat too, I left them out for simplicity
>>84909907Im not making it up, this actually existed. It was a triplex for 350k>>84909911It was definitely not the best neighbourhood but pakis will take what they can get. I was also suspicious of some damages but all I can say is that the photos looked fine on the surface
>>84909918Well not necessarily, obviously my first choice would be white professionals (couples in particular), without pets or children. The pakis dont make horrible tenants though, at least from what I hear. The mistake is renting to natives or low income whites, they will fucking destroy the place.
>>84909724Based.OP is the kikes Jesus talked about in the bible.Enjoy hell fag.
>>84909907I'm very skeptical of this. I live in a small town in Ontario in the middle of nowhere. 350k here would get you a small 1-2 bedroom house for retirees to downsize into. It's probably busted and needs major work.
The downside is that multi family homes are only in the ghetto and you have to live there a year to get normal loan. Obviously it's a leveraged loan and if you go underwater you're stuck with a shitheap in the ghetto. Buying retirement home first means you never have to live in the city, and if it goes underwater it doesn't matter because it's your retirement home and actually has value seperate from the dollar amount. Also trees take a long time to grow. If you wait until retirement only your kids or grandkids will get to enjoy them, assuming they don't just sell to a developer the second your casket lid is closed.
>>84909948It's common in America. Triplexes or quads might be hard to find, but there's lots of duplexes in that range if you look at medium and big cities.
>>84909948Are you in southern or northern Ontario, though? In my neck of the woods, I can take a screenshot of availabilities right now and show you (surface level) nice looking, family sized homes and multi-unit properties for 350k. I think I am in a good opportunity location wise, our median income is fairly low compared to other parts of the province and so that is reflected in prices.
>>84909856>That is 64,200 annually minus the 6500 property tax so 57,700 a yearYou'll also need property insurance and separate liability insurance. Maybe $7,000/year combined. You're down to ~$50,000.You have to pay normal income tax on your income too. That's going to be about 20%. Now you're down to about $40,000.>i don't think maintenance costs would be that regular of an occurrence.You would be wrong. Shit is ALWAYS going wrong even with good tenants, and if you're managing it yourself it's a nightmare. Tenants love to call at 11pm and say "water is pouring all over the place". You'll probably want a management company to deal with that, and a management company is going to take ~7% of rent as their fee. That's another $5,000 a year. You will have to pay for the repairs of course. Common wisdom is save 10% of the income for repairs. I don't care to do the exact math, I think we're at ~$32,000 a year now? Nice bonus passive income, but you better start praying to god to save you from any major repairs like a new roof or repainting the exterior. Worst case scenario though is when tenants decide to stop paying rent and don't leave. You're looking at 5 months to get a court ordered eviction, if you're lucky. Again, you'll want a management company to deal with this unless you enjoy hiring lawyers and going to court. During that time you'll get no rent income, you can't rent to someone else because the guy won't move out, and the tenant knows the end is near so he's going to fuck the place up out of spite. He finally gets forced out and you have $10,000 in repairs because he stole the copper from the walls and sold the appliances on craigslist. You can try to sue him for the money, but he doesn't have any. That's why he wasn't paying rent.In short, I'd read up on the subject a little more before you jump into this.
>>84909659>t. doesn't know the definition of rent seekingAn apartment building isn't an artificial barrier to a natural right-of-way or a title to unimproved land that will only have value because of the investment of the tenants. This is actually profit-seeking.
>>84910136>You have to pay normal income tax on your income tooOnly if you're too retarded to incorporate.
>>84909940>he doesnt think pakis and hindus are pestsOh boy youre about to get a serious wake up call if you rent to them
>>84909635meshugana... what an odd ball.
where are there multi family homes being sold for $350k op? what are the demographics of the renters?
>>84910752Northern Ontario. Most renters are either white, middle class tradies with some nurse/retail/HR woman and kids, pakis, students of various races, or natives.The natives are an obvious blacklist, I have seen them destroy properties. Whites you have to look out for, many are okay but many are also white trash alcoholics and will also destroy your shit. Pakis seem hit or miss, the east asians seem like a safe bet.
>>84909726you want to rent to pakis? in canada? and you're white??bro...
>>84910802Why would I not get wealth off of paki labor
>>84910838Jeets will make your walls smell like curry PERMANENTLY and lie about property damage. Your funeral retard.
>>84909635>Why dont more people do this?Because then the economy would collapse because their would be no value created by the vast majority of economic activity.
>>84910792interesting. I did some research about buying commercial properties in nyc, turns out the bank usually asks for a 30% down payment. idk what its like in Canada though
>>84910880>having a place to live isn't valuableDon't make the mistake of conflating the value of total human activity with the value of economic transactions. Transactions are measurable and approximate consensus because they demonstrate that a population of buyers and a population of sellers agree about how much something is worth. This makes the aggregation of transaction prices within an economy (more or less some accounting tricks) a useful measure, and we call it things like GDP. It's useful to allow many different people to meaningfully discuss about how much value is being generated in a given place over a given period of time, even though no one person among us would choose to have all of that exact value generated for that amount of money if they were somehow able to control the whole economy directly. Never forget that economics is an imperfect attempt to measure true value, which is personal and subjective. What is valuable to me may be worthless to you. Your fortune may come at the cost of my misfortune.The ongoing value of a home is difficult to measure, but it doesn't disappear once you stop paying someone for it. It's similar to how when women entered the workforce and being a homemaker became much less common, the numbers went up but people didn't feel that much better off. Now there are numbers on the sheet for day care and tutoring and cleaning services and gardeners, but the loss of the value of the work that homemakers did before they started going to the office has never been accounted for. Nor has the loss of mens' energy and effort that came from the increased contribution to household chores when women started doing more paid work. My aspie neetwife provides incredible value to me, but GDP obsessed people would prefer that I pay a maid and a whore and a fertility doctor and a surrogate and an egg donor and a therapist and never have a single non-transactional non-monetized interaction with another human in my whole adult life.
>>84911121holy trvkethe people who only care about the line going up are the worst people to be around, fr
