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
I am surprised no is mentioning two huge benefits: A) write offs – tools, mileage, phone, office, Internet, etc (if you do your own work managing the property). B) depreciation— PURCHASE PRICE/ 27.5 years = approximately 6.2% gross income is subtracted from gross profit and that’s what you’re taxed on, not the full gross profit ( fellow Redditors, correct me if I’m wrong please)
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