/biz/ - Business & Finance

It might actually work. Seriously.

>>55584935
maybe i should have asked during american hours

>>55585034
It doesn't help honestly. I've asked during EU hours and U.S. hours and all anyone ever wants to talk about is some pajeet crypto scam. Honestly if you can secure yourself a decent mortgage interest rate wherein your monthly nut is less than what you would get for it as rental income there's no reason it shouldn't work, logically.

>>55585057
yeah i don't know why it wouldn't work, but that just raises the question of why everyone else isn't doing it as well. blackrock would be slurping all these houses up to rent out, and then dumping before they crash the market

.... you can though plenty of people do it

>>55585072
It won't work because the income will be exceeded by outgoings in most cases.


Most "mom and pop" investors are still paying 3- 5 grand a year into their investment.

Rent may cover the mortgage if your lucky , then there's property taxes and insurance , repairs and upkeep.

>>55585084
property taxes and insurance are included in the mortgage payment. Repairs and upkeep are different beast and ideally you'd be collecting enough in rent to cover those costs.

>>55584924
people do it obviously, sometimes building enormous companies
BUT often times rents can dip below your total costs (mortgage + upkeep + property taxes)

Yes, after the mortgage is paid you get a lot of cash flow for relatively small recurring costs. But can you manage your finances that solidly for 20+ years? Many can't

>>55585099
>property taxes and insurance are included in the mortgage payment.


No they are not , I've been in property business for a decade and spent 5 years managing 150 properties where we would handle everything for our clients (landlords)

That wouldn't even work as property taxes are updated annually or bi annually so you couldn't factor that into a mortgage more than a year ahead anyway.

Home insurance may be included but that's for owner occupied land , landlord insurance is for home being rented out.


You should shut the fuck up about things you know nothing about , go brag and pretend to be an expert on reddit for your ego

>>55585072
It make take 30 years for you to be able to enjoy your house though. And then you have to play landlord and worry about meth head/single mom renters.

>>55584924
that's exactly what landlording is in most cases. landlords don't make big money, maybe $200-300/month cash flow per door.

>>55585441
>You should shut the fuck up about things you know nothing about , go brag and pretend to be an expert on reddit for your ego
based

>>55584924
This is literally what REITs and owners of apartment buildings do.
For example, Black Rock owns 13,361 units across 76 buildings.
Blackrock basically owns an entire "town", Stuyvesant Town, which has 11,250 apartments over 80 acres on Manhattan’s East Side.
https://therealdeal.com/new-york/2020/12/29/these-are-nycs-largest-rental-landlords-of-2020/

>>55585072
jesus dude you must be 18 to post here.

>>55584924
>i could end up owning the whole city if i did it enough
sure, until something goes wrong for whatever reason and you can't make payments and then you lose everything.

>>55586515
dude how can someone post this image and with a straight face say it's one iota better than that stupid flyover meme pic

>>55586605
First off, I didn't said it was better (yet).
Secondly, it actually IS better to live in a low-crime, majority white, walkable neighborhood.
The reliance on cars in the US costs our economy an extra $1,000,000,000,000/YEAR in expenses (auto accidents, healthcare, car and health insurance, maintenance, fuel, car payments, etc.
Imagine how many NYC's we could build with an extra $1 TRILLION/YEAR??
The US would've had about 10+ cities as big or bigger than NYC, plus MORE arable farm land, cheaper food, less reliance on China/Russia, etc.
>with an average life expectancy of 84.8 years, which is higher than the median life expectancy of 81.2 for all New York City neighborhoods.

Why stop at homes? Buy the entire stock market while you're at it.

>>55586669
Politicians ruined the country by screwing up the housing market and favoring white suburbs and keeping black people in "vote ghettos", that they could then mine for votes every 4-years.
If the government never got involved, then wealthy black and white families would've all lived near each other, black and white poor families would've lived in different areas, there wouldn't have been so much crime and poverty, and of course there would've been much less suburbs if the National Highway Act was never passed (which again ruined millions of acres of farm land).
https://en.wikipedia.org/wiki/General_Motors_streetcar_conspiracy
Oh, and of course politicians ruined mass transit by making it government-owned (and thus Union-owned) instead of allowing private companies to own mass-transit infrastructure.
Fuck, I hate this topic because of how much politicians have fucked us over every step of the way.

Do Americans not have buy-to-let mortgages?

>>55584924
this is basically how many people make their fortunes. the catch is that the bank usually wants a down payment.

>>55585441
Try and get a mortgage without insurance or property taxes being accounted for. Let me know when the bank laughs you out of the door. Property taxes where I live are only reassessed when your land/home is reappraised. I own 5 homes bigger, fuck you.

>>55584924
Why not indeed? That's exactly how Monopoly works.
>tfw you can't even afford to buy Baltic and Mediterranean Avenues.

>>55586669
>>55586729
TLDR; America is a car country, we have plenty of oil here that we aren't drilling and you're a faggot. Driving is based and cities are for masters and slaves - regular people want a house and a yard. Again, go suck a dick.

>>55588462
>Being a "car country"
>Waste $1 Trillion/year on getting around
>Ideology that is literally making us poor, fat, and lazy
>Average American spends approximately $1000/month on cars ($644/month on car payment, plus $416/month on "commuting" costs). For an average amount of $52/day.
>Meanwhile, Hong Kong workers who take the subway and walk everywhere else spend $8/day, or $160/month
How hard is it for you to understand how royally cars are fucking us over?
Do you work for a company that benefits from this arrangement at the expense of everything else?
Or are you a retarded polcuck?
https://fortune.com/2021/08/05/daily-commutes-cost-money-lost-commuting-in-american-cities/

>>55584924
Why not just borrow $200 trillion and buy the entire earth?

>>55585441
>property taxes are updated
Not here - that's only when the house is sold

>>55584924
You need a shit ton of cash to get into real estate. Also, rents are actually lower then mortgage payments right now, so the only people making money are those who bought years ago. You will bleed profusely if you try to do that right now.

>>55586669
>The reliance on cars in the US costs our economy an extra $1,000,000,000,000/YEAR in expenses
US is roughly energy neutral, therefore there is no actual economic burden. It is what it is, it's the life we've chosen.

What we spend on cars and driving, we save by not having to build up public transportation infrastructure that would be very low added value across our vast rural landmasses where population density is insufficient.
Obviously we're not perfect - Some of our existing infrastructure is failing, and plans for new projects are stuck in planning hell. California for example has been lighting money on fire trying to build a major train line for a decade. Many 2nd tier cities have little to no public transportation despite clear potential. Cars have their own drawbacks too: Rush hour around the country leads to massive traffic jams, there are parking limitations and simultaneously massive space wasted on those parking lots, especially in and around our major cities.

However, it's also nice to be able to drive yourself out to a park or campsite or vacation home in the middle of nowhere and be able to enjoy some time in nature. This is simply not an option in a society built entirely around public transport. If you want more personal freedom, you need a car.

>>55588666
>666
apt, considering you're shilling for no cars lmao, how hard is it for you to understand that most Americans want to own a car?
>wow, hong kong subway!
>cars must be maintained!
>people are fat and poor because they own cars!
you are a GIGANTIC faggot, which you strangely did not contest, so I rst my case.

>>55585099
Did you mean to say that property taxes, insurance, and the mortgage are included in the rent payment? A mortgage is a mortgage. Your property taxes are a separate thing entirely.

>>55588666
>those digits
this comment is based on many levels

>>55588812
>However, it's also nice to be able to drive yourself out to a park or campsite or vacation home...
Agreed, but I now have Uber/Lyft for that, and/or plenty of car rental companies.
>>55588900
>how hard is it for you to understand that most Americans want to own a car?
Lmao, and most Americans also think that Joe Biden won the 2020 election.
Kek, fine, waste your money for the rest of your life, lmao. Hopefully you've invested in energy companies to help offset your monthly expenses on cuckmobiles.

>>55588914
Do I need to show you niggers my fucking monthly statement? Have you niggers ever owned a home? Your monthly mortgage payment rolls in mandated insurance (by the bank) and a carve out for your property taxes at the end of the year. I have done this 5 times now. I own 5 homes. It has never not worked like this (in CA)

>>55584924
You’ve just discovered the worlds most difficult profession. Remember to tip your landlord.

Good luck covering repairs, taxes, insurance, and a 6%+ mortgage with the rent though.

Then with 25%+ down on a rental property (need more down on non-primary residence, even more on rentals) in a stagnant/declining real estate market your IRR will be mid single digits at best. Just run an IRR on your expected cash flow. Only way to get a high return is if rates drop and you get a bunch of appreciation and refi to pull out a bunch of cash. But if you know that rates will drop and assets will appreciate you can make money off levered stocks/options too—real estate is just safer with less upside on returns.

>>55588914
the stupidity on this finance board is fucking outrageous.
>>55589555
no need, anon. they will never get it, and, therefore, never make it.

>>55584924
my hs friend did that in 2009. he started with 1 house and a mortgage now hes worth 9 figures

>>55585441
fellow property-manager here
what do you do now?
I'm searching for options to get out of the PM game but my whole career has been first as a maintenance technician for a PM, then a PM.

>>55588805
>Also, rents are actually lower then mortgage payments right now
i forgot about that. i could theoretically supplement the remaining cost of the mortgage with my own money and still end up owning the house eventually for a cheaper price. on that note, is it expected for interest rates to go down any time soon?

>>55588666
I don't give a FUCK what bugmen in Hong Kong do. Hong Kong proper is literally smaller than the freeway belt around my city.

>>55590809
Literal Retard