Quote:
Originally Posted by Husky
Actually it does make sense IF what you subsidize is less than the principle debt reduction without taking into effect capital appreciation. Plus the tax loss as well. If my cash flow warrants, and the purchase price is right.
Ill dumb it dopwn:
Mortgage is $5 (total)
Rent is $3
I pay $2.
So for every $2 I pay I get $3 return.
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This was the point I was trying to make, I just articulated it horribly.
IMO if your mortgage / condo fees / property taxes were $1800, and you're charging $1600 for rent, sure you spend $200 a month on the property, but presumably more than $200 is being put towards the principal of the mortgage. So you're not really taking a loss, instead you're paying a X towards the mortgage and having X+Y in principal put towards the mortgage, Y being paid by the tenant.
Anywho, in the end if someone is willing to pay that price, then that's all that matters, not some yahoo's opinion! Speaking as someone who rented an entire house close to the university for $1850 in 2007, the price just seemed high to me.