Posted by Eric on February 23, 2001 at 22:58:13:
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.