Quote:
Originally Posted by GP_Matt
There is some confusion about cash flow positive I think. Every month when I make the mortgage payment on my rental I pay about $1100 of which ~$300 goes to interest and the other $800 goes towards principal. So every month on a cash basis I am out of pocket about $200 but my principal has been reduced by $800. The way I look at it, I have to spend $200 a month to increase my net worth by $800. I am not subsidizing your cheap rent, I am subsidizing your contribution to my net worth.
(Sorry if that sounds arrogant, I don't mean it to come off that way.)
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No apology necessary. I don't think you sound arrogant, I just think you're not really telling the whole financial story.
What about the costs for the things I mentioned in my post above, like maintenance, strata fees, property taxes, insurance etc.? Have you allowed for any possible vacant months or problem tenants?