Do people make real good money buying homes to rent them out?

IF they are bought at the right price and properly managed, yes.





If they are bought at the right price and the tenants are allowed to have their way, the owner/landlord ';will be eaten alive and spit-out - before breakfast.';





Thanks for asking your Q! I enjoyed answering it!





VTY,


Ron Berue


Yes, that is my real last name!Do people make real good money buying homes to rent them out?
I have done a lot of income tax returns for clients who owned SFRs. Single family residences (in southern California) typically have a net operating income of 2 - 3% of the value of the home. That may be a little higher after the recent downward trend in prices. After debt servicing, most SFRs would be in a negative cash flow. People who have made money in SFRs have done it mainly on appreciation, which isn't there right now.





Real estate investments in commercial property perform much better. If you don't have enough to buy a commercial property, consider a REIT.





Good luck.Do people make real good money buying homes to rent them out?
If the rent is above all maintenance cost than its a profit. You have the plumbing, infestation of bugs/rodents, fire/earthquake insurance, carpet care, roofing, wall structure, trash, water, sewer, heating, etc. Sure you can have a base rate for the rent but if the tenents damage the property than it cost more to patch it up. You barely will make a profit unless you do your math correctly than you should profit.
If you can buy the right house at the right prices it is possible to make money. By the time you figure in the depreciation, other expense and the appreciation of the house value over the long term, it can be very good.
Good question.


Yes they can in the long run. You would need to put 20% down on the home.


Get a real good interest rate. Then you will be lucky to make about $25.00 to 100.00 per month above taxes and Mortgage loan. The idea is to have the tenant to pay off the mortgage.


If it is rented out for 30 years. The home is now paid for. Of course you will go thru heck for those 30 years before it happens. Once it is paid off. WHEN You sell is when you make your money.


Best of luck.
yes. people can earn back what they had spent for the house and get more when their houses are still occupied. they can receive money every month by just staying at home and wait for people to pay rent.