I don’t know about y’all, but I have seen this happen far to often, in communities where this is supposed to be banned through their HOA – in fact, one of the few good things an HOA brings to the table, in my opinion. What am I talking about?
People purchasing homes to then turn around and rent them for more than what the mortgage would cost. I live in an apartment, smaller than most houses, and pay almost double what a mortgage would cost me a month. Why do I do this?
The main reason: I don’t know where I will be in the next few years. Like, I really don’t know. And, when you buy a house, that is the time frame you should be looking at if you want to make your money back/slowly flip a place. And I do mean slowly.
Why do I pay so much (for my area) on an apartment? Because I make to much to qualify for the other apartments around town that have central air and a garage. I’ve looked at renting a house, but paying the same I do now AND having to do all of the yard maintenance/clear the snow for myself? No, thank you.
But yet, when I was looking for a house a year ago (a year ago and I would have been able to stay in the house long enough to make it worth it), I couldn’t find any place in my budget that wasn’t already ACTUALLY sold. And you know what else? Those places that were generally in my budget ended up becoming rental properties. Buying these cheap, first time buyer properties and then turning them into rentals just makes it that much more difficult to break into owning your own home.
Just saying.
As tempting as it is to just buy up houses and rent them out, in the long run… who knows? It leaves a bit of a bad taste in my mouth. Renting condos/townhouses/apartments is one thing. But renting a house, for more than the mortgage on said house would be, and still having to do the maintenance on it yourself? That’s a little low.
I can’t help but to wonder, for all of these people getting into real estate/rentals for investments, how will this turn out in the long run?
Just a few thoughts.
