I can’t really wrap my head around it, you can have a tenant in there that maybe covers the mortgage, but it’s not really a good investment if you’re not getting a return?
Even if you use 500k to buy a property cash, wouldn’t that money be better off in the market?
In: Economics
You have to juggle multiple financial considerations when buying a house.
We own three houses, rent out the other two and break even on them. But we’re trying to build generational wealth. For us there is no income generated, but in 25 years when we’re retiring, we’ll have three paid off houses, two of which will be pure income to supplement our retirement.
When the wife and I are dead, our kids (and theirs) now have three houses generating pure income. They can buy a few more houses, rinse and repeat and my great great great grandkids now own a small housing empire.
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