Renting and reinvesting the savings from renting, will outperform owning and building equity

[Astroslik]

Living in low income, rural area or teleworking making 6 figures is the move.

It’s hard cause those checks make you want the finer things. For me personally, I can’t skimp on where I live. I need a nice spot with a doorman. I don’t want my rent exceeding 35% of my income though.

 

[Trojan 24]

savings from renting??

These brehs clearly ain't living in So-Cal, you ain't saving a dime renting if you want a nicer spot. Now if you don't mind roughing it a bit or having a long commute then you can

 

[calixprynce]

Living in low income, rural area or teleworking making 6 figures is the move.

I tried to move to the hood and some apartments told me I make too much. Wanted me to put 2 more people on a 2bdrm application.

I straight up felt discriminated against for being a single black man with no kids

 

[newworldafro]

I tried to move to the hood and some apartments told me I make too much. Wanted me to put 2 more people on a 2bdrm application.

I straight up felt discriminated against for being a single black man with no kids

Hmmm...interesting.

 

[calixprynce]

Hmmm...interesting.

the blacc lady that was helping me was cool af. She is from Cali too (Inglewood) and moved to TX in 96
I put how much I had in my checcing , and she told me to erase it and put $300 or the people will deny my application

Then I did everything she wanted, put my lil sis on the app as no income , and she called me bacc like
" They want your lil sister to call the Attorney General for income verification proving she isnt on child support" ( my lil sis dont even have a kid , she was just on the app the satisfy to weird ass income part)

I'm like , you mfs just stole my $

 

[MR. SNIFLES]

IT WORKS IF YOU CAN RENT FOR LESS THAN THE ACCUMULATED INTEREST WHILE YOU SAVE AN AMOUNT EQUAL TO YOUR HOME COST OVER THAT PERIOD.

 

[Fat Fred Jones]

Money saved not having to replace an A/C unit
Money saved not having to replace kitchen appliances.
Money saved not having to replace plumbing
Money saved not having to pay property taxes
Money saved not having to pay home insurance

Understand that these costs are certainly passed on to the tenants. Otherwise, the entire rental economy would be unsustainable for landlords.

 

[T’Challa’s Heir]

Understand that these costs are certainly passed on to the tenants. Otherwise, the entire rental economy would be unsustainable for landlords.

those costs are built into the rent though. One of those things breaking down doesn’t result in a new giant bill unexpectedly.

 

[Spence]

Try finding a 1600sqft 3.5 bath 3 bedroom house with a backyard in a decent neighborhood for the $650 I pay in mortgage plus insurance anywhere in the country

 

[the bossman]

Understand that these costs are certainly passed on to the tenants. Otherwise, the entire rental economy would be unsustainable for landlords.

those costs are built into the rent though. One of those things breaking down doesn’t result in a new giant bill unexpectedly.

in what way? Your rental price is gonna be based on what the market will tolerate.

If you have to buy a new AC unit this year for 5k you're not gonna be able to realistically raise the rent an extra $400+/mo the next.

Also most people are not budgeting enough to account for stacking reserves over time. Maintenance and repair costs are underestimated a lot

 

[IsThatBrothaMouzone?]

Can't compare mortgages and rent.

When people speak on having an inexpensive mortgage, that's usually the result of putting a decent sized cash payment down on the house. You have to remove some chunk of your own liquidity to "buy in" so to speak.

Apples to apples would be if you compare your total costs (mortgage, property taxes, repairs, insurance, HOA fees etc) to paying rent....not just mortgage vs rent.

In Dallas...property tax on a modest $250k house is like 5,000/year. You can rent a decent apartment for $1,000-ish. So five months rent plus a mortgage and everything else.

Having said that.....owning IS BETTER long term if you have enough money. If you are iffy on cash, better to rent and be flexible/liquid. Owning is good when you have enough dough where you could put maybe 1/3 of your savings into a down payment and have it be a significant downpayment. If you have to wipe out your savings, brokerage and 401k accounts....bad idea.

 

[Luke Cage]

Owning a home is about leaving something of value for my kids. They can sell it for a large sum of money one day, or they can live there relatively hassle free if they can afford the mortgage. You kids can't sell a rental property

 

[T’Challa’s Heir]

in what way? Your rental price is gonna be based on what the market will tolerate.

If you have to buy a new AC unit this year for 5k you're not gonna be able to realistically raise the rent an extra $400+/mo the next.

Also most people are not budgeting enough to account for stacking reserves over time. Maintenance and repair costs are underestimated a lot

I think we’re in agreement. I guess I could have been clearer. I assumed the owner prices maintenance and the like into the rent price. But that price isn’t going up month to month.

 

[UberEatsDriver]

Bump!


I’m actually more Inspired buy wealthy folks who invested in stocks and/or investment properties. I know a ADOS dude who rents in the Bronx but has a small building he rents out in Allentown PA that he owns.

I honestly think he’s acquiring more wealth at a faster pace than just buying a home for himself.


We also can’t forget the folks who invested in the right stocks and are good money now. I’m sure they probably wouldn’t be able to buy a house as nice as the ones they have now if they had just focused solely on home ownership and not taken that lucrative risk.

 

[the bossman]

I honestly think he’s acquiring more wealth at a faster pace than just buying a home for himself.

Yes. The house you actually live in is a poor investment compared to getting a property purely to rent it out