Quote:
Originally Posted by Sly
I don't know the LV rental market but if there is that much of a difference between rent and mortgage on a given property, there are most likely a lot of extra perks in the middle. Such as landscaping, utilities, and other extras.
I think you are also undervaluing some of your numbers.
Let's say we are talking about a $100,000 property and the mortgage is $500 a month. Your property taxes are probably somewhere around 1-2% (again, not completely sure about Vegas,) so that is another $100-200 a month. Then you have management fees of 10%, give or take, for another $100 a month. We are now up to $700-800. If it's in a HOA, add a couple more hundred. Throw in insurance, utilities, maintenance...
Money goes quick.
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Good points Sly. I didn't factor everything in.
Maybe a way of looking it at might be, they could pay for you to buy the house. No profit off the home itself. But the rent would pay off the mortage.
Then IF the market rebounds. You will have a nice piece of real estate sitting there you haven't been paying for. That you can now sell for a profit.