Renting Out Your Current Home Without Positive Cashflow...

Описание: Renting Out Your Current Home Without Positive Cashflow...

...Might actually make sense for many home owners

I know, I know

No one wants to lose money each month

or pay for someone to live in their house

but what if we took a closer look at things

we might just find out that there is actually a gain in your net worth

let's suppose that you mortgage payment is $2000 per month

and your goal is to rent it out for $2200 per month

so that you have $200 positive cash flow if you rent it on your own

or hire a property manager to handle everything and at least break even

sounds pretty good, right ?

but what if the current rent is $2000 per month

you would break even doing it on your own

but not "make any $$$"

and if you hired a property manager you would actually "lose $$$"

a closer look at things might change your opinion a bit

each month, the rent coming in would make the most of the mortgage payment

and you would cover the rest of it by contributing around $200

its likely that your mortgage balance would come down more than $200

in this example, lets say the balance comes down $700 per month

so you are now making $500 per month in equity, which is $6000 per year

which only gets higher with each mortgage payment made

then consider that your property is likely to go up in value 3%-4% each year

for a $300,000 home, that is another $9,000-$12,000 in equity each year

most people will have their CPA depreciate the property on their taxes

which could also save you thousands of dollars each year

add it all up and you are in the ballpark of a $15,000-$20,000

gain in your net worth

and not really losing money at all

I hope that this math helps

tune into today's show for the rest of the details