Gaining equity

[Scott Oswald]

Hello,

First time poster, long time reader. When you rent a property I know you want to have extra money left over after paying property taxes, maintenance and taxes etc, but in town where it is more competitive does anyone settle for just the equity in the home that the renter is paying? Obviously you aren't making money because you haven't sold the house but your net worth is rising. I know there are always problems but assuming that the rent coming in covered all expenses just up to the break even point would anyone get rid of that property? Its not costing you anything but you aren't making excess. Just curious don't beat me up too bad.

[Thomas S.]

I do not work for free. There are zero guarantees that you will ever take a dime out of a property when you sell so in reality your are speculating not investing. Very poor retirement plan. Every penny of equity is costing you money every month it sits dead in your property. 

If you die before you retire, the market crashes when you need the money or any of a thousand other reasons you have wasted your time dealing with tenants, repairs, taxes, etc. Your money would be safer in a metal box under your bed.