Quote:
Originally Posted by Irace86.2.0
Rent goes up over time, but the mortgage payment doesn't, so the rent will be less than the mortgage payment at first, but then it will go up beyond the price of the mortgage payment, even if it stays below the cost to buy a new home.
I don't get your second statement. The owner rents the house out to tenants who pay off the home over time and then the owner moves in when they retire. People do this all the time. Typically, it isn't done through renting. Typically, someone buys a starter home, but then they may have enough capitcal and income to buy a second home instead of selling because they don't need the capital from the sale of the first home. They live in the second, bigger home and rent out the apartment, condo or small home, and then when they retire, they sell the big home and downsize back into their original home. The renters and owner maintains the property, and when the owner returns, they can do any upgrades they want. Typically, the home will see less upgrades and renovations over the life of the 30 years with renters than with the owners, so when the owner moves in, any improvements or renovations will be easily afforded from their invested savings.
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What you originally said was buy one house, and rent it out, then live in an apartment you are renting from someone else. You are basically taking on all the burdens of home ownership without many of the benefits. If all you are interested in is money, sure you can make it work if you live in a real cheap apartment. Not worth it to most people though.
You ever had to maintain one house, much less 2? I know people that do it and all I hear is complaints about it being a PITA, especially when renters leave and you need to attract new ones. If you are going that route, you are treating the house like an investment, which seems to be against what you were saying before.