I live in the greater Vancouver, Canada area. Real estate prices here are unaffordable for the ordinary working stiff. I bought a small 3 bedroom, 1 bath bungalow for $250,000 in the suburb of Richmond. It was near the local college and hospital. I put $50,000 down and mortgage payments PITI are about $1450.
I came up with a plan to maximize the revenue generation. I rent out individual bedrooms for $450. I converted a small storage room into another bedroom - it rents out for $400. I put in coin operated washer and dryer to add to the cash flow, it typically does $30 - $40 per month. The house has a wide driveway but only covered parking for 2, for which I charge an additional $20. In all, I collect about $1820, for a pofit of $370 per month. Thankfully I haven’t had any major repair bills and being located well, my vacancies have been minimal.
Posted by David Dennis on February 23, 2001 at 24:27:21:
In carltons book he says buying a home no money down,To rent it out the home should rent for $500 if it costs $50.000 or rent for $1000 if it costs $100.000 and so on but I live in a part of the country where a home costs alot more than the possible rent, (cost $100.000 rents for $850)how is it possible to buy and rent in this kind of market?
Look for a multi unit building, a duplex. Cost is usually same or even less than a single home, but double rent can be more than one family home. also, for your own safety, you have two different families and two chances to collect rent to secure your mortgage payment each month. If you can’t find one, maybe, depending on your municipality, you can make a two unit out of a large home. Upstairs and downstairs.