Updated almost 16 years ago on . Most recent reply
How to not run a rental business
I just moved into a new place (I'm renting) at an amazing price. From my knowledge gained on these awesome forums, and of the local market in general I knew that my landlord had to be hemorrhaging cash on this rental.
Finally, my curiosity got the better of me so I decided to figure out just how much.
It surprised even me...
Purchase price in 2006 = $220,000
Rents from my roomates and I = $715
50% rule expenses = $357
30 year Mortgage at 5.4% interest = $1235
-$877 cash flow per month
-10524 cash flow per year!
Ouch, It could be worse guys...
Reid :wink:
Most Popular Reply
Just make sure that your landlord is actually paying his or her mortgage and not just pocketing your rent. I get calls all the time from people who are looking to move because the place they are renting is being foreclosed. Best of luck.