Quote:
Originally Posted by Chuck Norris
Why not rent it out?
You rent something out for two reasons. One, you rent it out so it will cover itself and/or generate a monthly or yearly profit.
You rent something out for a loss each month with the expectation that the price will increase at a greater rate than your monthly loss (speculation of price).
Right now, the main reason there is a problem with prices is due to price/rent multiples. For example:
Down the street from my dad's, there is a home that would sell for about $6 million or so. You mortgage would be $26,000 per month plus taxes insurance and if something goes wrong, you're on the hook for it. You can rent the home out for $12,000 which is less than half the price it would sell for.)
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why is that stupid? as long as the rent is higher then the interest part of the morgarage the guy is making money in the long term.
who the hell is going to rent a place for the same price as a mortage?..