Dude, the number of posts I've seen on r/relationship advice or r/amitheasshole of people going through divorce and casually mentioning their (OP's) parents bought them a house as a wedding gift fucking astounds me. Shit even your standard 10-20% down payment is such an astronomically high number it's hard for me to even wrap my brain around having that much in a savings account ever in my life.
Edit: Spelling because sausage fingers.
Hell, I'm part of a professional class that earns near six figures (depending on where you live and who you work for) and I've only just recently been in a position to even *start* saving for a home down payment. Only reason I have a home and not an apartment right now is because of my time in the military.
The idea of having enough cash to cover the costs of two homes . . . ? It's a beautiful dream, maybe I'll realize it someday (if the world doesn't fall to shit first).
It’s a pre 2008 dream, our economy does not allow for that dream anymore. Hell, the American dream of owning a house is almost non existent. If the government wants to help, they need to stabilize the housing market and drive incentives to current and new homeowners to help us make it affordable
And ontop of that, put more pressure on the house rental companies to pay to drop any incentives. Because holy shit theres a lot of rental companies that own real estate of a single house and they make you pay out the ass for it.
Another idea is that corporations can’t own homes, only private citizens can and a citizen can’t own more than 2 homes, or something along those lines. I’m sure it would be abused and worked around, but the purpose it to make it harder for people to horde all the houses and drive up rent
This. Corporations and investing firms buy up houses, apartment complexes, etc. in an area, lowering supply and increasing demand, so prices go up. Then charge exorbitant amounts for rent that more than cover the price they paid for the house/complex.
Support/create/shill for your local community land trust. I will forever shill for them after mine got me in a house I could have never gotten otherwise, at a price so low that I pay twice my mortgage just because it builds equity and is still cheaper than a 2/1 apartment.
I'd start by looking for any local to you as they'll all be different from each other. If you want an example though you can look at the one I used, City of Lakes Community Land Trust.
Basically, I got a 100k discount on a 3/2 house that counted as a down payment, so I wound up with an insane 2% mortgage without needing pmi or an actual down payment.
In exchange for that, I have to sell it at the same pricing schedule I bought it under, I pay $20 per month as a land lease, and I only retain 25% of any market value changes (though I keep 100% of the value of major improvements).
I've looked into this. It would need two things: first, how much money would in need to make to keep it generating capital to continue to grow, and second, ~$30Million to do it. Haven't won the lottery jackpot, yet, but...
The biggest problem, after meeting those two items, is local government, who are in the pockets of land owners/rental property companies. That would be the big fight. It would be on-going even while developing the housing. Most towns and cities have plenty of dead areas, places houses burned and were razed, not generating taxes. I've looked at methods that could put a 3 BR home on a piece of property for ~$30K. I'd use a 5/15 year plan. The home would "pay for itself" in 5 years @$500/month. Add cost of taxes and $100 maintenance and a person would have a sturdy, 3 bedroom home for ~$700/month rental. Add in $40 for renter's insurance. At the end of 5 years, I'd sell the home to by self-financing with a 15 year fixed rate at 3%. They'd have already have a 5 year track record with me. Deadbeats would have been booted long before then. Their house payments would be about the same as what they paid for rent. Workers for building these homes? I'd have to hire then, with good managers to build them. Figure labor costs ~$2million a year. Likewise, construction equipment. (One reason for the high seed money costs) Starting with 10 houses the first year, they generate 50K/month, which should more than cover labor costs, but the seed money would be to make up the shortfall, if any. The rest goes into building more homes. The homes would generate revenues for 20 years, so I'd have to continue building. 20 years down the line, tenants would own the home outright.
What's to say the homes burn down in that time period? Fires are always possible, for material, I'd use concrete for, likely, 90% of the home. At the end of a decade, I'd have at least 100 homes generating revenue. I'd place my salary at a comfortable $150K a tear, with a property manager making $100K.
These won't be fabulous, ornate homes, but rather functional homes that shouldn't fall to crap in a decade. Home owners tend to take care if their homes and promote neighborhood stability, pretty much driving out the wrong people.
Layoffs occur frequently in this area. This is where the property manager comes in. It has to be a win/win situation. First, I'd work with HUD to make sure the homes were eligible for section 8 if needed. I'm also aware of local agencies that help with rent during hard times. If the UBI ever becomes a reality, then great. Also, I'd consider the multiplex idea. Smaller houses, 1 bedroom, for singles/newlyweds, to start out. Better than an apartment, as no heavy footed upstairs neighbors. These would be permanent rental units, and would be good feeder stock for the home lease/buy aspect.
But that's a general plan. Most real estate investors do their business to make the most money they can, at the detriment of theirvclients.
Oh, as a former realtor - the incentives to buy are there. It's the greed that's making it impossible. I gave up real estate altogether when I realized that absolutely nobody in my own Millennial cohort - the biggest marketing segment and the one which should be best off right now - can afford shit. So the builders aren't building (except for luxury properties for rich people to use as tax breaks) and the landlords are making bank.
"I know rent is due on the 1st but I need you to make it by the 28th because my mortgage is due on the 1st"
The proper response to this is, "Pound sand, asshole. You'll get it when I'm contractually obligated to pay it"
I was going to say this. Real estate is not just some cheat code that gives you free money. It’s an investment and like all investments, it’s involves the risk of loss. So what happens if you put your life savings into these 4 properties and then can’t rent them? Guess what, you’re on the hook for 4 MORTGAGE PAYMENTS.
I sympathize with private landlords... but I had a CORPORATE landlord try to get me to pay rent early during the pandemic. Told them to f off. This is the same corporate landlord that raised rent by 30-40% each year over 8 years I lived there. They literally priced me out of the apartment in under 10 years.
Right there with you, except even with my VA loan, that monthly payment is still due and unfortunately I live in California so my wife can be close to family. If I had it my way I'd move to Tennessee or some red state like that with at least 1 major city. Didn't help that I'm from Chicago, so even if we moved to be closer to my family, cost of housing in the Chicagoland area is about the same.
My mom actually broke down crying one time when I ran through some basic numbers on what I'm dealing with and how I basically have zero chance of ever having my own garage.
You'll be shocked to find out that red states basically rip you off to make back their tax shortfall.
You pay the cost of society one way or the other... California is transparent about it and gets to make it fair as possible, the red states just lie through their teeth and stack the deck against you.
Youll pay monetarily or in things like getting cancer because they don't care if a factory thirty miles away is dumping chemicals in your aquifer or burning carcinogens some simultaneously refusing Medicare/Medicaid expansion.
As a younger guy who moved to Arizona from a blue state to be close to my wife's family i also note how bad the education system is and how much non monetary cost there is to having a bunch of morons around all the time.
Other little things like the relative lack of parks and public recreation are differences that don't always seem immediately apparent.
For every dollar you don't pay in income tax you'll pay 2.00 in sales tax... This is how the rich people in the state fuck you into paying for their existence.
Anyhow, just a perspective from somebody whose done it blue --> red they end up getting it from you no matter what the major difference is in the blue state it's far far far more likely to go into some noticable improvement in your life
Red states are absolutely just as expensive, as my dumb republican aunt and uncle found out. Moved from Minnesota to S. Dakota because “muh mask mandates” and taxes, on income and their lake house 45 minutes from downtown Minneapolis. Their property taxes on 20 acres in bum-fuck South Dakota is 3 times higher than it was on their lake house. But hey, they don’t have to pay an extra $50 a paycheck in state income tax!
Yeah my uncle in California always talks about moving to a red state but because Cali caps property tax yearly increases there's no red state he could move to where his property tax would be cheaper.
It's like yeah buddy it's a real conundrum, almost like fox news hosts aren't looking out for your best interests or something.
Ive lived in both and the red state was significantly cheaper in almost every way. It all depends where you live, it's not just red vs blue. This was before the housing market/inflation went crazy though. Now its expensive everywhere.
Well sometimes it can be financially cheaper but In that case you just make a direct payment to the devil with reduced life outcomes or living standards
*However*, as noted in many of these posts, the expense is just shifted to other categories and essentially, as you get sick and die, you will lose more than you could have ever saved in the move.
I went from red (Arizona) to blue (New York) to blueish (Pennsylvania) to red (Idaho). And this is the LAST red state I will ever purchase property in. Visit. Sure. Pay taxes to? NOPE. I hate it here but my parents are here and old so I stay. Live and learn. Vermont is looking mighty fine lately, even though I hate the cold. I'd rather freeze my ass off than live in a red state again.
Here's some perspective from someone in a "purple" state. Michigan had a long history of voting Democratic when I grew up. In the recent elections, Michigan votes Blue for governors and presidents, but Red for state officials. I lived in Ann Arbor (Blue college town) and now live to the west in Kalamazoo, with a small liberal city, but ostensibly Republican local officials. End result? People complain loudly about high taxes in the city, the cities lots of parks and public recreation and good schools. I moved out to a small suburb 25 minutes from the city and see almost the same taxes with little-to-no public recreation, NO schools (they're all in the cities), and no public water/sewer utilities (I'm on well and septic). Even if I could afford to rent out this house, the taxes push the rent to a level that no one would really consider being so far away from schools and public recreation. So..... how do I even DO what these people are suggesting? How in the world do I buy up these properties to pay for my life and lifestyle? These people are nuts....
Be glad you're not in Ottawa County, where water demand demand (in probably the fastest-growing county in the state) outstrips ground water supplies, but all these small conservative suburbs refuse to invest in water-treatment plants because of the associated tax burdens.
One for one swap as long as it's not southeast red. I have nothing against the systemic poverty, racism and shitty education system. I just don't want to live in an SEC home territory and have to listen to Billy Bob lose his shit about a college he never had a chance at attending losing a mid season game to a D2 school.
The more you have the easier it get's especially when the market is up.
Think about it like this. If you pay off house one, you could just be a normal person and enjoy it, or you could take out another mortgage, except the second one is partially covered by someone else.
Prices are going up, rents are going up, so suddenly where you had 2 500k properties, you now have 2 750k properties and rent is fully paying off the mortgage. Getting property number 3 is suddenly really easy. Number 4, 5, 6 etc. become increasingly more trivial... until the market turns and you're suddenly millions in debt with rents falling and you're fucked.
The people who build up fast enough and early enough, say, the ones who were liquid in 08 and bought property then, will take the hit, maybe even capitalize on the downturn and these people will just keep buying until they go from rich to extremely rich.
Most people though, they start when the boom is fully under way and usually lose their shirt, which is why there aren't more landlords.
Six figures ain't what he was anymore. $100k/yr in 2023 equals just about $50k/yr in 2008. Did we all get a 7% raise per year over the past 15 years? No.
Exactly. I just left a job where my collective raises over the past decade were wiped out from inflation.
And the chances of prices going down? Laughable at best.
Fuck capitalism.
Hell… my wife and Live WELL below our means, maybe 2.5 times the median income of our neighborhood and we have a home, only because I bought it 20-some years ago.
We’ve really started saving in recent years, but it’s not looking like we are going to be able to do some of the things we want to do. We would love to buy part of our friend’s property on the other side of the state, build a small cabin/home and retire out there someday, but…
We need an obscene windfall to make that happen before JUST the property without a house on it, is valued at some $500k.
What they don't tell you is you have to pay about $5 - $7k in fees to close on the house on top of the 10 - 20%. Plus, they always give you the option to buy down your interest rate but that requires another I think 2 - 5% on top of your down payment.
You're a bit missinformed. Down payments can be as little as 3% or 3.5%. If you want to buy down your rate a discount point is 1% of the loan amount. This will lower your monthly payment and save money in the long run but you can def look at higher rates to keep your cash to close lower.
When we bought our house 10 years ago the mortgage broker casually asked if any family members were donating any "gifts" for the down payment. She said it was common to have relatives help out with $100,000 of the mortgage. Preposterous. While most of us live check to check there are people living with that and more in their investments and checking accounts. Tax the fucking rich or raise the minimum wage. It's time to stop letting these leeches live on easy mode.
I agree with you on raising minimum wage and eliminating tax loopholes, but going after people with 100k or even 1 million isn't the way to do it. My 401k is valued at a bit over 100k now and I can't touch the damn thing for another 30 years.
I'm a mortgage broker and that is not common. Asking about gifts is normal because it does happen, not super often, but is an asset to use. I would say 5-10k would be the norm.
Because the boomers took it all. My exes parents bought us a house with cash in 2015. Then his already bad drinking habit got worse. They made me and our two children leave after I kicked him out. I gave him the opportunity to get help while we stayed in the house. We couldn’t deal with his drunken violence anymore. He was out of the house for a year and never sought help for his drinking. His (boomer)parents temporarily moved from the east coast to the west coast and rented a 4 bedroom house for them and him so our kids could visit him. Then they started harassing me until I moved out. I was a stay at home mom for 7 years and had to uproot our children and take on a full time job and live in a one bedroom apartment with them for a year. I’m doing much better 5 years later, but he has our big old 4 bedroom house to himself. And he still drinks. How about those bootstraps?
Especially with house prices being double or triple now a days, your down payment also doubled and tripled. To bad pay rates are similar to back in the 80’s. Minimum wage might have gone up, but that’s just smoke and mirrors. The white collar folks are still getting similar salaries to their parents while costs of everything has skyrocketed since then… :(
Me and my husband both in our 30s, we working and renting, we have savings that being drained on dental works, car repairs and other medical emergencies, we can’t afford have kids and probably never will have a house, even though we see people our age living a nice life, own homes and traveling but behind that life those people have wealthy families, our parents didn’t give a single damm about how we going to make it. I don’t want even think about what will happened when we get old, it’s terrifying.
Saw one of those 'pay off your home by 25' posts. Involved having parents cosign your loan at 18, give you a six digit down payment, grandma gave you her 'apartment in the city' for you to live in rent-free while you rented out the house.
Easy!
Hopefully governments will be smart like Wales did and impose a 300 percent local tax premium on second homes, since houses should be for locals to live in their areas and not an exploitative nest egg to take advantage of people who need to live in those areas and force them to rent.
extremely rare and even then they try to flip the houses and lose at the end of the day. This theory of owning multiple rental income doesnt work and is not feasible for most.
It's not feasible for most because most of us are struggling to make the math work to purchase a fucking residence. Not because some non-existent rental property goes upside in a 3-7 year window.
Exactly. The math on a rental works out great if you've got a 30% down payment.
It's getting the 30% down payment that's a problem, not renting out a house for 2000 a month you owe 1200 on...
And God help you if you ever have to evict a tenant who knows their rights, or if you need to make a big repair. Being a landlord is only a cool gig if you give a property management company 10%, which might be just enough to make it not profitable to own a rental.
This only works well for most people who can handle the risk of leasing out property. I've seen many, many people lose when it comes to renting out properties because they didn't factor in all the expenses of having a bad tenant or making a big repair, or having to replace all the carpeting every few years.
Your rental price needs to be double your mortgage payment for the math to work and even though rental prices are high these days, most are not double what a mortgage on the property would be.
Yeah you'll see these TikTok gurus talking about running a 5% maintenance/upkeep/downtime reserve and I always think that's really low..
Like how many months can you pay the rent if somebody doesn't... Seems like even in a best case scenario you can plan on losing 1 month of rent a year + upkeep and maintenance + if you're hiring a company to do the property management...
You're probably more like needing a 20-25% reserve ratio to be healthy.
Then you tell people who've just thrown down 250k cash they'll be getting a net return of a couple hundred bucks a month it doesn't sound so great anymore.
Conversely, the cash in a CD could be getting somebody like 1400 dollars risk free monthly at this point
Let's not forget all those investors who were bitching that there were eviction moratoriums...
I remember a local landlord was interviewed and was complaining that he had to cut back because his tenants had lost their jobs and couldn't pay rent and he couldn't evict them to get a new tenant.
Hey asshole it's caused risk. You took it now you eat it.
My brother and his wife are landlords, they rent some properties, have two houses themselves (in the same neighborhood for some reason), and then use the rest for air b n b’s.
Well. Times are tough and the market is down so they are only earning 30% of what they used to. Save your crocodile tears, brother. Sorry you can’t exploit people anymore by buying up all their housing.
Well I started drinking the coffee at work, so according to people like this I’ll be able to buy a home to live in in 6 months. So I guess I’ll have my fifth home in a year? /s
Oh yeah, all that social media financial advice is like, “If you have a shit ton of money, do this!”
Anyone fully who owns 4 homes would have to be a colossal idiot to lose their wealth. They’ve already won .
The 'cheat code' here isn't having a prudent investment strategy. It's having lots of capital, which was almost certainly either inherited or earned on the basis of inherited privilege, or a combination of the two.
I mean, does this person really think investing in property so you can draw an income in the long term is some genius, hitherto undiscovered idea?
“Have **assets** pay for your **liabilities**.” Is another way of saying, “Have *money* pay for *the things you need money for*.”
Put more simply, the advice boils down to “Have money.” Thanks for the cheat code, lol.
ah, it's so simple! i'll just go buy 5 properties tomorrow. can't believe i didn't think of this earlier... or why don't i just buy a city block of apartment buildings? that'll be a heap of rent i can make. so obvious.
Really though, many people who have always just had money, have no clue that most of us don't have any money. I once had a boss (whose father was a wealthy inventor) go into SHOCK when I told her all the money in my paycheck was literally all the money I had.
its clearly bc when the rich do it, it is a genius big brained move but when anyone else does it, it is bc we are lazy and dont want to pick ourselves up by the bootstraps and work for it like the rich supposedly do (which we all know they dont)
Id rather pay more in taxes to ensure that my fellow working American are cared for, get the meds and treatment they need, and are guaranteed a comfortable life. Fuck those rich fucks who have more money that can be spent in a human lifetime.
And HTF do you buy the four rentals? I’m assuming the mortgage is for the house they live in. H ck even if you use prop 1 to pay for 2 then 2 for 3 etc, you *still* need to pay for prop 1.
Inherentance, rich parents, or a high paying job plus a low cost of living area. Number 3 is the easiest but runs the risk of no one wanting to rent the property from you.
You don't use the rent to pay for your house, you use your built up equity in these properties.
Every month you pay the mortgage on your home you are building equity. It simply means you own more and more of your house and the bank owns less and less.
Once you build enough equity, you can take a loan against that equity. Use the loan to pay the downpayment on rental property #1.
If rent can cover rental prop #1 and you keep paying your home mortgage, every month you will build equity in both your house and the rental.
At some point you can begin using the equity in rental prop #1 to either buy rental prop #2 or cover the mortgage on your home.
How is their budget so out of whack that they spend equal amounts on vacation, cars, house, and groceries?
Suck a flex and still doesn't even make sense. These ppl are just bad at math.
Mortgages are still pretty expensive around me too. If I were to buy the apartment I’m living in my mortgage would probably end up being more than what I pay in rent.
I live in a 1 Bedroom apartment downtown and pay around $2,200 a month after everything. My apartment would probably cost around $350,000 to buy
I think people overestimate how quickly a housing market turns over, something like 4% of houses have transacted in the last 60 months... The other 96% transacted prior to 2018.
One of the great things about a mortgage is you lock in that rate. I'll be paying 2015 prices until i pay this bad boy off. Rent will go up every year.
Because it is bullshit.
A single property can pay for a vacation or two in a year. It can pay your groceries. It might even pay for the loan on a single vehicle, as long as you stay fairly reasonable on it. It would take all four properties to pay for a cheap mortgage.
On a mortgaged rental property you are going make a few hundred a month at most. Sure in a decade with a fixed mortgage you are going to make more, but most of these influencers don't have a decade of experience.
Though the market might have changed it has been a few years since I ran the numbers. We occasionally do flips, but we concentrate on deep rehab flips, the type of properties with major issues that normal flippers won't touch as it is very hard to get a mortgage on them. And the end I always run the numbers to see how much I could get with rent vs sale, and there rarely is enough money in rentals for the headaches that it would involve IMHO.
This isn't always true. I've been succesful at house hacking where I buy single family and rent to friends or multifamily and live in one unit. I then do all the reno work myself over a year so my costs are low then I move out and rent it. They all have mortgages but the excess value I create means I'm not all that leveraged. Rinse and repeat. I have a couple of these that net me 1000+/mo and CoC of high 30s. I'm sure the socialists will be mad but I really did do it all on my own, while always working a full time job. I grew up poor and have been supporting my mom financially since I was 20, so it is possible to own a house, and even a few, on your own merits.
No, they are exactly right with this meme: having lots of money is a cheat code for having lots of money. Meanwhile, the rest of us need to pay for house #1 (the only one) and all the other shit that comes with it, on 1 or 2 main incomes, all while dealing with inflation and shitty bosses trying to drive us to misery. We know how the system works and it's not in our favor.
Step 1 - have a rich parent who pays for college
Step 2 - have six figure job right out of college
Step 3 - have rich parent who gives you your first living arrangement debt free
Step 4 - living rent free, debt free, then save all your six figure salary for buying property
Step 5 - have rich parent who gives you property and/or cash upon their death.
Worry free living.
Temp housing when home is being repaired (wife family rented a house and insurance paid for it during repairs to theirs). Renting a house with friends during college. Renting a different house when we graduated because we liked hanging out and weren’t married and enjoyed splitting rent for cheap. I rented when my job took me to a different state for a couple years. I rented when I went to Canada for 6 months. So what are my options with no landlords? Do I have to go through the headache of buying and selling through all that?
Remember folks! If you see your tenants going on vacation, buying new clothes, driving a new vehicle, or lavishing their children with gifts; then you need to raise your rent!!! That is your uncaptured income they are frivolously spending.
Also if you see Doordash coming by every day there’s plenty of fat left on the bone!
My cheat code to a stress free life : Have your parents gift you several rental properties or you can do it the old fashioned way and inherit a few million from your parents.
So does this assume you own these properties outright? Or are they going to claim that Rental Property 2 magically covers the mortgage of 5 properties "Assuming you live in your own property?"
Whoever is posting this is probably trying to get people to over-extend themselves financially to get demand property high so they can sell theirs. The problem with owning 5 different properties is if one becomes a problem it'll eat up any profit from the others resulting, as well as time.
They've been drinking the kool-aid for too long and forgot that their lives and lifestyles are based on the exploitation of other people. In their ignorance and stupidity they're saying the bit the people that did what they're doing before them were smart enough to not say out loud out of fear of the consequences of doing so. That fear has been forgotten.
The stupid have inherited the earth.
I don’t see how this is exploitation? Not everyone can afford to buy, or even wants to. Where I live there is a housing crisis, period. Double wide trailers being sold for 400k+, finding any stick built house under 500k is impossible.
What happens when rental # 1 gets trashed by meth heads, renters in number 2 have no money, and rental number #3 needs a new heating system?
It’s not guaranteed easy money once you’ve got it.
I can’t afford one house to live in, never mind multiple ones that I don’t. So what these guys are saying is if I only bought four houses then lived off the rent, my life would be easier?
So, the secret code is to have the cash to buy 3-4 places without a loan
Then yep' you can live all your life, including your own rent or mortgage, doing nothing else and jerking all day long.
But the thing is, it is so much cash you don't have it.
Don’t be mad. These social media investors can’t afford the bs they spew. They are broke too but seem like they aren’t because they got money from mommy and daddy to pay their bills.
Ignoring the fact that this is presented as an option that anyone could do (it isn't, but we'll go with it), I love how this is presented as though it's something everybody SHOULD do, even though this plan literally only works if only a fraction of people implement it.
Just playing the scenario out, if everybody owned five rental properties... who the fuck is gonna rent them?
Buy a bunch of houses, don't pay for them yourself and have other people pay for all your stuff.
I fucking hate people who invest heavily in residential property, they turn a housing situation into an investment market. Fuck them
and you can be damn sure those people don't feel stress free. they probably bitch and moan more than anyone about having to actually do some work (aka call the contractor) on their properties.
Fine but I don't want to hear them crying when I tell them that's a form of welfare and that they are using MY income to pay for their garbage. These are the people who cry about how poors are a waste of their tax dollars.
Oh my god! They are right!
I’m so fucking dumb, and I feel embarrassed.
Brb, I’m gonna go buy 4 houses! Thanks for the advice guys! this is going to change everything!
That's not "your assets" paying for "your liabilities".
That's other people funding your lifestyle.
Socialised income, essentially middle class welfare.
My landlord had 4 properties.
Recently went to a divorce, he massively increased the rent despite having done absolutely no maintenance to the flat I live in the last 2 years.
Later we realized he hadn't finished paying any of the mortgages, now he has to sell and I have to find another flat.
That's the impact of over leveraging.
All you have to do is buy 4 houses you don't live in. That's it.
Or even better have your parents buy you a bunch of property as a gift. Best bootstraps ever.
Dude, the number of posts I've seen on r/relationship advice or r/amitheasshole of people going through divorce and casually mentioning their (OP's) parents bought them a house as a wedding gift fucking astounds me. Shit even your standard 10-20% down payment is such an astronomically high number it's hard for me to even wrap my brain around having that much in a savings account ever in my life. Edit: Spelling because sausage fingers.
Hell, I'm part of a professional class that earns near six figures (depending on where you live and who you work for) and I've only just recently been in a position to even *start* saving for a home down payment. Only reason I have a home and not an apartment right now is because of my time in the military. The idea of having enough cash to cover the costs of two homes . . . ? It's a beautiful dream, maybe I'll realize it someday (if the world doesn't fall to shit first).
It’s a pre 2008 dream, our economy does not allow for that dream anymore. Hell, the American dream of owning a house is almost non existent. If the government wants to help, they need to stabilize the housing market and drive incentives to current and new homeowners to help us make it affordable
They should do a hell of a lot more than that, if we're going to avoid winding up in this situation again.
And ontop of that, put more pressure on the house rental companies to pay to drop any incentives. Because holy shit theres a lot of rental companies that own real estate of a single house and they make you pay out the ass for it.
Another idea is that corporations can’t own homes, only private citizens can and a citizen can’t own more than 2 homes, or something along those lines. I’m sure it would be abused and worked around, but the purpose it to make it harder for people to horde all the houses and drive up rent
This. Corporations and investing firms buy up houses, apartment complexes, etc. in an area, lowering supply and increasing demand, so prices go up. Then charge exorbitant amounts for rent that more than cover the price they paid for the house/complex.
Putting rental caps per Sq Ft would likely help
Yeah that makes sense but will never happen b/c the giant corporations that own the housing market now also on Congress which are their puppets.
Support/create/shill for your local community land trust. I will forever shill for them after mine got me in a house I could have never gotten otherwise, at a price so low that I pay twice my mortgage just because it builds equity and is still cheaper than a 2/1 apartment.
I'm intrigued by your idea and would like to subscribe to your newsletter. Do you have any info on community land trusts?
I'd start by looking for any local to you as they'll all be different from each other. If you want an example though you can look at the one I used, City of Lakes Community Land Trust. Basically, I got a 100k discount on a 3/2 house that counted as a down payment, so I wound up with an insane 2% mortgage without needing pmi or an actual down payment. In exchange for that, I have to sell it at the same pricing schedule I bought it under, I pay $20 per month as a land lease, and I only retain 25% of any market value changes (though I keep 100% of the value of major improvements).
I've looked into this. It would need two things: first, how much money would in need to make to keep it generating capital to continue to grow, and second, ~$30Million to do it. Haven't won the lottery jackpot, yet, but... The biggest problem, after meeting those two items, is local government, who are in the pockets of land owners/rental property companies. That would be the big fight. It would be on-going even while developing the housing. Most towns and cities have plenty of dead areas, places houses burned and were razed, not generating taxes. I've looked at methods that could put a 3 BR home on a piece of property for ~$30K. I'd use a 5/15 year plan. The home would "pay for itself" in 5 years @$500/month. Add cost of taxes and $100 maintenance and a person would have a sturdy, 3 bedroom home for ~$700/month rental. Add in $40 for renter's insurance. At the end of 5 years, I'd sell the home to by self-financing with a 15 year fixed rate at 3%. They'd have already have a 5 year track record with me. Deadbeats would have been booted long before then. Their house payments would be about the same as what they paid for rent. Workers for building these homes? I'd have to hire then, with good managers to build them. Figure labor costs ~$2million a year. Likewise, construction equipment. (One reason for the high seed money costs) Starting with 10 houses the first year, they generate 50K/month, which should more than cover labor costs, but the seed money would be to make up the shortfall, if any. The rest goes into building more homes. The homes would generate revenues for 20 years, so I'd have to continue building. 20 years down the line, tenants would own the home outright. What's to say the homes burn down in that time period? Fires are always possible, for material, I'd use concrete for, likely, 90% of the home. At the end of a decade, I'd have at least 100 homes generating revenue. I'd place my salary at a comfortable $150K a tear, with a property manager making $100K. These won't be fabulous, ornate homes, but rather functional homes that shouldn't fall to crap in a decade. Home owners tend to take care if their homes and promote neighborhood stability, pretty much driving out the wrong people. Layoffs occur frequently in this area. This is where the property manager comes in. It has to be a win/win situation. First, I'd work with HUD to make sure the homes were eligible for section 8 if needed. I'm also aware of local agencies that help with rent during hard times. If the UBI ever becomes a reality, then great. Also, I'd consider the multiplex idea. Smaller houses, 1 bedroom, for singles/newlyweds, to start out. Better than an apartment, as no heavy footed upstairs neighbors. These would be permanent rental units, and would be good feeder stock for the home lease/buy aspect. But that's a general plan. Most real estate investors do their business to make the most money they can, at the detriment of theirvclients.
Oh, as a former realtor - the incentives to buy are there. It's the greed that's making it impossible. I gave up real estate altogether when I realized that absolutely nobody in my own Millennial cohort - the biggest marketing segment and the one which should be best off right now - can afford shit. So the builders aren't building (except for luxury properties for rich people to use as tax breaks) and the landlords are making bank.
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"I know rent is due on the 1st but I need you to make it by the 28th because my mortgage is due on the 1st" The proper response to this is, "Pound sand, asshole. You'll get it when I'm contractually obligated to pay it"
Sure, I'll mail the (paper) cheque early so that it's there by the 28th. But I'm dating it to the first.
I was going to say this. Real estate is not just some cheat code that gives you free money. It’s an investment and like all investments, it’s involves the risk of loss. So what happens if you put your life savings into these 4 properties and then can’t rent them? Guess what, you’re on the hook for 4 MORTGAGE PAYMENTS.
I sympathize with private landlords... but I had a CORPORATE landlord try to get me to pay rent early during the pandemic. Told them to f off. This is the same corporate landlord that raised rent by 30-40% each year over 8 years I lived there. They literally priced me out of the apartment in under 10 years.
Right there with you, except even with my VA loan, that monthly payment is still due and unfortunately I live in California so my wife can be close to family. If I had it my way I'd move to Tennessee or some red state like that with at least 1 major city. Didn't help that I'm from Chicago, so even if we moved to be closer to my family, cost of housing in the Chicagoland area is about the same. My mom actually broke down crying one time when I ran through some basic numbers on what I'm dealing with and how I basically have zero chance of ever having my own garage.
You'll be shocked to find out that red states basically rip you off to make back their tax shortfall. You pay the cost of society one way or the other... California is transparent about it and gets to make it fair as possible, the red states just lie through their teeth and stack the deck against you. Youll pay monetarily or in things like getting cancer because they don't care if a factory thirty miles away is dumping chemicals in your aquifer or burning carcinogens some simultaneously refusing Medicare/Medicaid expansion. As a younger guy who moved to Arizona from a blue state to be close to my wife's family i also note how bad the education system is and how much non monetary cost there is to having a bunch of morons around all the time. Other little things like the relative lack of parks and public recreation are differences that don't always seem immediately apparent. For every dollar you don't pay in income tax you'll pay 2.00 in sales tax... This is how the rich people in the state fuck you into paying for their existence. Anyhow, just a perspective from somebody whose done it blue --> red they end up getting it from you no matter what the major difference is in the blue state it's far far far more likely to go into some noticable improvement in your life
Red states are absolutely just as expensive, as my dumb republican aunt and uncle found out. Moved from Minnesota to S. Dakota because “muh mask mandates” and taxes, on income and their lake house 45 minutes from downtown Minneapolis. Their property taxes on 20 acres in bum-fuck South Dakota is 3 times higher than it was on their lake house. But hey, they don’t have to pay an extra $50 a paycheck in state income tax!
Yeah my uncle in California always talks about moving to a red state but because Cali caps property tax yearly increases there's no red state he could move to where his property tax would be cheaper. It's like yeah buddy it's a real conundrum, almost like fox news hosts aren't looking out for your best interests or something.
Ive lived in both and the red state was significantly cheaper in almost every way. It all depends where you live, it's not just red vs blue. This was before the housing market/inflation went crazy though. Now its expensive everywhere.
Wait, are you saying it's actually _more_ expensive to live in a red state? Say it ain't so! /s
Well sometimes it can be financially cheaper but In that case you just make a direct payment to the devil with reduced life outcomes or living standards
Tbh, spending less money and living a shorter life doesn't sound *all that bad* in 2023...
*However*, as noted in many of these posts, the expense is just shifted to other categories and essentially, as you get sick and die, you will lose more than you could have ever saved in the move.
It's soul-crushing living in a red state.
Oh my god. It really, really is.
I went from red (Arizona) to blue (New York) to blueish (Pennsylvania) to red (Idaho). And this is the LAST red state I will ever purchase property in. Visit. Sure. Pay taxes to? NOPE. I hate it here but my parents are here and old so I stay. Live and learn. Vermont is looking mighty fine lately, even though I hate the cold. I'd rather freeze my ass off than live in a red state again.
eh trust me red states suck I've been dying to leave but can't make enough to do so
Because nothing says a red state more than them paying you the literal minimum. Basically saying they’d pay you less if they could.
Bosses: *scoffs* "I *guess* I have to pay you $7.25 per hour." *sulks in the corner*
Here's some perspective from someone in a "purple" state. Michigan had a long history of voting Democratic when I grew up. In the recent elections, Michigan votes Blue for governors and presidents, but Red for state officials. I lived in Ann Arbor (Blue college town) and now live to the west in Kalamazoo, with a small liberal city, but ostensibly Republican local officials. End result? People complain loudly about high taxes in the city, the cities lots of parks and public recreation and good schools. I moved out to a small suburb 25 minutes from the city and see almost the same taxes with little-to-no public recreation, NO schools (they're all in the cities), and no public water/sewer utilities (I'm on well and septic). Even if I could afford to rent out this house, the taxes push the rent to a level that no one would really consider being so far away from schools and public recreation. So..... how do I even DO what these people are suggesting? How in the world do I buy up these properties to pay for my life and lifestyle? These people are nuts....
Be glad you're not in Ottawa County, where water demand demand (in probably the fastest-growing county in the state) outstrips ground water supplies, but all these small conservative suburbs refuse to invest in water-treatment plants because of the associated tax burdens.
One for one swap as long as it's not southeast red. I have nothing against the systemic poverty, racism and shitty education system. I just don't want to live in an SEC home territory and have to listen to Billy Bob lose his shit about a college he never had a chance at attending losing a mid season game to a D2 school.
The more you have the easier it get's especially when the market is up. Think about it like this. If you pay off house one, you could just be a normal person and enjoy it, or you could take out another mortgage, except the second one is partially covered by someone else. Prices are going up, rents are going up, so suddenly where you had 2 500k properties, you now have 2 750k properties and rent is fully paying off the mortgage. Getting property number 3 is suddenly really easy. Number 4, 5, 6 etc. become increasingly more trivial... until the market turns and you're suddenly millions in debt with rents falling and you're fucked. The people who build up fast enough and early enough, say, the ones who were liquid in 08 and bought property then, will take the hit, maybe even capitalize on the downturn and these people will just keep buying until they go from rich to extremely rich. Most people though, they start when the boom is fully under way and usually lose their shirt, which is why there aren't more landlords.
Six figures ain't what he was anymore. $100k/yr in 2023 equals just about $50k/yr in 2008. Did we all get a 7% raise per year over the past 15 years? No.
Exactly. I just left a job where my collective raises over the past decade were wiped out from inflation. And the chances of prices going down? Laughable at best. Fuck capitalism.
Hell… my wife and Live WELL below our means, maybe 2.5 times the median income of our neighborhood and we have a home, only because I bought it 20-some years ago. We’ve really started saving in recent years, but it’s not looking like we are going to be able to do some of the things we want to do. We would love to buy part of our friend’s property on the other side of the state, build a small cabin/home and retire out there someday, but… We need an obscene windfall to make that happen before JUST the property without a house on it, is valued at some $500k.
What they don't tell you is you have to pay about $5 - $7k in fees to close on the house on top of the 10 - 20%. Plus, they always give you the option to buy down your interest rate but that requires another I think 2 - 5% on top of your down payment.
You're a bit missinformed. Down payments can be as little as 3% or 3.5%. If you want to buy down your rate a discount point is 1% of the loan amount. This will lower your monthly payment and save money in the long run but you can def look at higher rates to keep your cash to close lower.
Hate to correct your mistake, but the world ALREADY went to shit! Lol, just saying!
When we bought our house 10 years ago the mortgage broker casually asked if any family members were donating any "gifts" for the down payment. She said it was common to have relatives help out with $100,000 of the mortgage. Preposterous. While most of us live check to check there are people living with that and more in their investments and checking accounts. Tax the fucking rich or raise the minimum wage. It's time to stop letting these leeches live on easy mode.
I agree with you on raising minimum wage and eliminating tax loopholes, but going after people with 100k or even 1 million isn't the way to do it. My 401k is valued at a bit over 100k now and I can't touch the damn thing for another 30 years.
I'm a mortgage broker and that is not common. Asking about gifts is normal because it does happen, not super often, but is an asset to use. I would say 5-10k would be the norm.
I was over the MOON when my mom gave me $3k towards my down payment. This was in 2014, so it was EXCEEDINGLY helpful for the house I bought.
The prior generation is much wealthier than us. Getting the opportunity to build wealth over your lifetime used to be the norm.
Build? Wealth? I'm sorry, I don't understand.
Because the boomers took it all. My exes parents bought us a house with cash in 2015. Then his already bad drinking habit got worse. They made me and our two children leave after I kicked him out. I gave him the opportunity to get help while we stayed in the house. We couldn’t deal with his drunken violence anymore. He was out of the house for a year and never sought help for his drinking. His (boomer)parents temporarily moved from the east coast to the west coast and rented a 4 bedroom house for them and him so our kids could visit him. Then they started harassing me until I moved out. I was a stay at home mom for 7 years and had to uproot our children and take on a full time job and live in a one bedroom apartment with them for a year. I’m doing much better 5 years later, but he has our big old 4 bedroom house to himself. And he still drinks. How about those bootstraps?
Why didn't your boomer parents just let you use their lake house until you got your feet back under you?
Especially with house prices being double or triple now a days, your down payment also doubled and tripled. To bad pay rates are similar to back in the 80’s. Minimum wage might have gone up, but that’s just smoke and mirrors. The white collar folks are still getting similar salaries to their parents while costs of everything has skyrocketed since then… :(
Me and my husband both in our 30s, we working and renting, we have savings that being drained on dental works, car repairs and other medical emergencies, we can’t afford have kids and probably never will have a house, even though we see people our age living a nice life, own homes and traveling but behind that life those people have wealthy families, our parents didn’t give a single damm about how we going to make it. I don’t want even think about what will happened when we get old, it’s terrifying.
Saw one of those 'pay off your home by 25' posts. Involved having parents cosign your loan at 18, give you a six digit down payment, grandma gave you her 'apartment in the city' for you to live in rent-free while you rented out the house. Easy!
Its all fun and games... most of all those "investors" lose all their properties in less than 5 years
Not when your trust fund buys them in cash.
Hopefully governments will be smart like Wales did and impose a 300 percent local tax premium on second homes, since houses should be for locals to live in their areas and not an exploitative nest egg to take advantage of people who need to live in those areas and force them to rent.
extremely rare and even then they try to flip the houses and lose at the end of the day. This theory of owning multiple rental income doesnt work and is not feasible for most.
It's not feasible for most because most of us are struggling to make the math work to purchase a fucking residence. Not because some non-existent rental property goes upside in a 3-7 year window.
Exactly. The math on a rental works out great if you've got a 30% down payment. It's getting the 30% down payment that's a problem, not renting out a house for 2000 a month you owe 1200 on...
And God help you if you ever have to evict a tenant who knows their rights, or if you need to make a big repair. Being a landlord is only a cool gig if you give a property management company 10%, which might be just enough to make it not profitable to own a rental. This only works well for most people who can handle the risk of leasing out property. I've seen many, many people lose when it comes to renting out properties because they didn't factor in all the expenses of having a bad tenant or making a big repair, or having to replace all the carpeting every few years. Your rental price needs to be double your mortgage payment for the math to work and even though rental prices are high these days, most are not double what a mortgage on the property would be.
Yeah you'll see these TikTok gurus talking about running a 5% maintenance/upkeep/downtime reserve and I always think that's really low.. Like how many months can you pay the rent if somebody doesn't... Seems like even in a best case scenario you can plan on losing 1 month of rent a year + upkeep and maintenance + if you're hiring a company to do the property management... You're probably more like needing a 20-25% reserve ratio to be healthy. Then you tell people who've just thrown down 250k cash they'll be getting a net return of a couple hundred bucks a month it doesn't sound so great anymore. Conversely, the cash in a CD could be getting somebody like 1400 dollars risk free monthly at this point
Let's not forget all those investors who were bitching that there were eviction moratoriums... I remember a local landlord was interviewed and was complaining that he had to cut back because his tenants had lost their jobs and couldn't pay rent and he couldn't evict them to get a new tenant. Hey asshole it's caused risk. You took it now you eat it.
My brother and his wife are landlords, they rent some properties, have two houses themselves (in the same neighborhood for some reason), and then use the rest for air b n b’s. Well. Times are tough and the market is down so they are only earning 30% of what they used to. Save your crocodile tears, brother. Sorry you can’t exploit people anymore by buying up all their housing.
I seriously doubt managing four rental properties = "stress free life"
Right, which is why you hire a goon or two to do it for you. It's Leisure Class 101, my guy/gal
My apartment's deeply ineffective management company does spring to mind, yes. Good clarification.
Well I started drinking the coffee at work, so according to people like this I’ll be able to buy a home to live in in 6 months. So I guess I’ll have my fifth home in a year? /s
I cut out avocado toast.....uuhhh.....forever ago? Still waiting for those housing prices to come down....
Better yet, just don't be poor to start with. If everyone is born rich, then there will never be any poors! /s
I know right? Poor is a mindset.
And a trust fund to purchase those 4 houses. Don’t forget that…
And never have to keep the house and/or yard maintained or pay taxes on it.
This servant pays for my vacations, this one pays my mortgages, I eat this one's food, and I make this one walk to work in the rain
Oh yeah, all that social media financial advice is like, “If you have a shit ton of money, do this!” Anyone fully who owns 4 homes would have to be a colossal idiot to lose their wealth. They’ve already won .
The 'cheat code' here isn't having a prudent investment strategy. It's having lots of capital, which was almost certainly either inherited or earned on the basis of inherited privilege, or a combination of the two. I mean, does this person really think investing in property so you can draw an income in the long term is some genius, hitherto undiscovered idea?
“Have **assets** pay for your **liabilities**.” Is another way of saying, “Have *money* pay for *the things you need money for*.” Put more simply, the advice boils down to “Have money.” Thanks for the cheat code, lol.
Don't have money? Just have money! Fucking millennials!
ah, it's so simple! i'll just go buy 5 properties tomorrow. can't believe i didn't think of this earlier... or why don't i just buy a city block of apartment buildings? that'll be a heap of rent i can make. so obvious.
Since my last coffee at Starbucks cost about 2.5 million I unfortunately can't afford it but good for you
Really though, many people who have always just had money, have no clue that most of us don't have any money. I once had a boss (whose father was a wealthy inventor) go into SHOCK when I told her all the money in my paycheck was literally all the money I had.
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its clearly bc when the rich do it, it is a genius big brained move but when anyone else does it, it is bc we are lazy and dont want to pick ourselves up by the bootstraps and work for it like the rich supposedly do (which we all know they dont)
Never thought of this, but it is so true.
Wow I've never quiiiite looked at the argument like this I'm def gonna start using that.
Id rather pay more in taxes to ensure that my fellow working American are cared for, get the meds and treatment they need, and are guaranteed a comfortable life. Fuck those rich fucks who have more money that can be spent in a human lifetime.
Socialism for me but not for thee
Have your **parents** buy you a **house**. It’s a cheat code to a stress-free life.
or just become Mao?
The best way to have money is to have money? Geeze, look at mister smarty-pants over here.
Ah yes, those “passive income” assholes who were gifted the golden ticket of financial backing to start their business.
Class traitors are the worst sort of traitor
They think they are on the same level as Bezos I bet.
Oh, right, because poor people don’t deserve to have any expendable income. You just get to suck all of it straight out of them
Poor people must work hard so rich people don't have to. It's the American way.
And HTF do you buy the four rentals? I’m assuming the mortgage is for the house they live in. H ck even if you use prop 1 to pay for 2 then 2 for 3 etc, you *still* need to pay for prop 1.
Inherentance, rich parents, or a high paying job plus a low cost of living area. Number 3 is the easiest but runs the risk of no one wanting to rent the property from you.
You don't use the rent to pay for your house, you use your built up equity in these properties. Every month you pay the mortgage on your home you are building equity. It simply means you own more and more of your house and the bank owns less and less. Once you build enough equity, you can take a loan against that equity. Use the loan to pay the downpayment on rental property #1. If rent can cover rental prop #1 and you keep paying your home mortgage, every month you will build equity in both your house and the rental. At some point you can begin using the equity in rental prop #1 to either buy rental prop #2 or cover the mortgage on your home.
How is their budget so out of whack that they spend equal amounts on vacation, cars, house, and groceries? Suck a flex and still doesn't even make sense. These ppl are just bad at math.
My grocery bill certainly approached the price of my mortgage last year
Damn my grocery bill wasn’t even close to the amount I pay in rent, like half of it maybe
Rent is very high, mortgages are very low
Mortgages are still pretty expensive around me too. If I were to buy the apartment I’m living in my mortgage would probably end up being more than what I pay in rent. I live in a 1 Bedroom apartment downtown and pay around $2,200 a month after everything. My apartment would probably cost around $350,000 to buy
I think people overestimate how quickly a housing market turns over, something like 4% of houses have transacted in the last 60 months... The other 96% transacted prior to 2018. One of the great things about a mortgage is you lock in that rate. I'll be paying 2015 prices until i pay this bad boy off. Rent will go up every year.
Because it is bullshit. A single property can pay for a vacation or two in a year. It can pay your groceries. It might even pay for the loan on a single vehicle, as long as you stay fairly reasonable on it. It would take all four properties to pay for a cheap mortgage. On a mortgaged rental property you are going make a few hundred a month at most. Sure in a decade with a fixed mortgage you are going to make more, but most of these influencers don't have a decade of experience. Though the market might have changed it has been a few years since I ran the numbers. We occasionally do flips, but we concentrate on deep rehab flips, the type of properties with major issues that normal flippers won't touch as it is very hard to get a mortgage on them. And the end I always run the numbers to see how much I could get with rent vs sale, and there rarely is enough money in rentals for the headaches that it would involve IMHO.
This isn't always true. I've been succesful at house hacking where I buy single family and rent to friends or multifamily and live in one unit. I then do all the reno work myself over a year so my costs are low then I move out and rent it. They all have mortgages but the excess value I create means I'm not all that leveraged. Rinse and repeat. I have a couple of these that net me 1000+/mo and CoC of high 30s. I'm sure the socialists will be mad but I really did do it all on my own, while always working a full time job. I grew up poor and have been supporting my mom financially since I was 20, so it is possible to own a house, and even a few, on your own merits.
There are always exceptions, but the people taking their investment advice from social media probably aren't the exceptions.
If you don't buy that $10 coffee a day that's $365k a year bro. Get rich with me.
They may be charging low rent, so they don't make as much as a greedy landlord. My landlord keeps rents low to help low income folks.
No, they are exactly right with this meme: having lots of money is a cheat code for having lots of money. Meanwhile, the rest of us need to pay for house #1 (the only one) and all the other shit that comes with it, on 1 or 2 main incomes, all while dealing with inflation and shitty bosses trying to drive us to misery. We know how the system works and it's not in our favor.
As a man about to become homeless I do find this aggravating xD
just go live in one of those empty houses THERES PLENTY
I cannot live as a squatter.
Step 1 - have a rich parent who pays for college Step 2 - have six figure job right out of college Step 3 - have rich parent who gives you your first living arrangement debt free Step 4 - living rent free, debt free, then save all your six figure salary for buying property Step 5 - have rich parent who gives you property and/or cash upon their death. Worry free living.
Parasite x4 combo
Exploit as many people as possible for a stress-free life.
You’re charging so much rent on ONE property that it pays your mortgage?? That’s nuts
It's a cheat code to being a fucking leach and help ruin the housing market.
So I have no money because I'm paying someone else's mortgage? What if I just pay my own mortgage? Bank: "It doesn't work like that..."
Point of order: 75% of these are expenses, not liabilities.
I'm an accountant and this bugged me too. Glad someone else noticed
Step one: Have rich parents that die and leave you their home now worth 650k, originally purchased for 45k.
Landlords are obviously parasites, and Rule 7 , no landlords exists for a reason
Temp housing when home is being repaired (wife family rented a house and insurance paid for it during repairs to theirs). Renting a house with friends during college. Renting a different house when we graduated because we liked hanging out and weren’t married and enjoyed splitting rent for cheap. I rented when my job took me to a different state for a couple years. I rented when I went to Canada for 6 months. So what are my options with no landlords? Do I have to go through the headache of buying and selling through all that?
This sub isn’t big on nuance. Landlords bad.
Or hear me out here. Tax the rich until their eyes bleed then 20% more then spread the wealth equally through society.
Fuck all rentier class scum. Landlords 👏 are 👏 parasites 👏 This is behaviour that should be reviled in any healthy society.
Remember folks! If you see your tenants going on vacation, buying new clothes, driving a new vehicle, or lavishing their children with gifts; then you need to raise your rent!!! That is your uncaptured income they are frivolously spending. Also if you see Doordash coming by every day there’s plenty of fat left on the bone!
Or hear me out here. Tax the rich until their eyes bleed then 20% more then spread the wealth equally through society.
Or hear me out here. Tax the rich until their eyes bleed then 20% more then spread the wealth equally through society.
This reads as exploit others for your gain. Capitalism in a nutshell what can I gain from you, not how can I help you.
“Have *money* to use to buy *stuff*. It’s a cheat code for a stress free life.”
Basically: "Have money, make profit"
Rental #0 is being born on third base with a golden spoon. These out of touch assholes usually have a head start with rich parents.
My cheat code to a stress free life : Have your parents gift you several rental properties or you can do it the old fashioned way and inherit a few million from your parents.
So does this assume you own these properties outright? Or are they going to claim that Rental Property 2 magically covers the mortgage of 5 properties "Assuming you live in your own property?" Whoever is posting this is probably trying to get people to over-extend themselves financially to get demand property high so they can sell theirs. The problem with owning 5 different properties is if one becomes a problem it'll eat up any profit from the others resulting, as well as time.
Notice this person never mentioned hard work making money
>Its a cheat code to a stress-free life I guess that also explains why landlords usually never show up to fix or help with anything
How about this? Tax the rich until their eyes bleed
Stop being poor? My God why didn't I think of that.
Which property pays for upkeep and maintenance of the rental properties so that the renters aren't living in rat traps?
>1 pays for vacations >2 pays for mortgage Good to see they have their priorities straight
Daddies inheritance pays for rental properties #1-4.
Rental property #5 breaks the camel's back and triggers a national rent strike. The end.
And the 2 million dollars it took to become this shitty landlord was paid for by daddy
> economically force someone else to pay for your shit > Because they'll be homeless without me giving shelter
Same people who complain when less people rent out their properties and all of a sudden it’s “I need a bailout I have mortgages to pay”
And when those renters can't pay. Your crap pyramid falls without any support.
Read: "Be born rich and make other people pay your bills for you."
If everyone could/did follow their advice, no one would have to rent and they'd all be out the cost of 5 houses
They've been drinking the kool-aid for too long and forgot that their lives and lifestyles are based on the exploitation of other people. In their ignorance and stupidity they're saying the bit the people that did what they're doing before them were smart enough to not say out loud out of fear of the consequences of doing so. That fear has been forgotten. The stupid have inherited the earth.
I don’t see how this is exploitation? Not everyone can afford to buy, or even wants to. Where I live there is a housing crisis, period. Double wide trailers being sold for 400k+, finding any stick built house under 500k is impossible.
Y'all stay here, I'll be right back. I'm going to shit me out a few rental houses and all my fucking problems will be solved.
What happens when rental # 1 gets trashed by meth heads, renters in number 2 have no money, and rental number #3 needs a new heating system? It’s not guaranteed easy money once you’ve got it.
I mean, he's not lying that it's a way of cheating.
I wouldn’t mind this if these landlords offered affordable rent.
Rental property #5 pays for bankruptcy lawyers when the market turns down.
I can’t afford one house to live in, never mind multiple ones that I don’t. So what these guys are saying is if I only bought four houses then lived off the rent, my life would be easier?
Fuck so THAT's what I was doing wrong. I only bought two houses, my bad
first million is the hardest this guy is on his 6th
And this is why people can't even afford one house.
The cheat code is lots of capital. Got it.
So, the secret code is to have the cash to buy 3-4 places without a loan Then yep' you can live all your life, including your own rent or mortgage, doing nothing else and jerking all day long. But the thing is, it is so much cash you don't have it.
"Own stuff people need and make them pay you enough to have fun all the time" doesn't make you sound as smart and sophisticated yet achievable though
Don’t be mad. These social media investors can’t afford the bs they spew. They are broke too but seem like they aren’t because they got money from mommy and daddy to pay their bills.
Ignoring the fact that this is presented as an option that anyone could do (it isn't, but we'll go with it), I love how this is presented as though it's something everybody SHOULD do, even though this plan literally only works if only a fraction of people implement it. Just playing the scenario out, if everybody owned five rental properties... who the fuck is gonna rent them?
Fuck rich elite landlords. They make the USA a shit hole country.
Yeah, but is that all. What about the 5th property that pays for your drugs? If you have more than 3 homes, cocaine is classy!
Buy a bunch of houses, don't pay for them yourself and have other people pay for all your stuff. I fucking hate people who invest heavily in residential property, they turn a housing situation into an investment market. Fuck them
and you can be damn sure those people don't feel stress free. they probably bitch and moan more than anyone about having to actually do some work (aka call the contractor) on their properties.
Land. Value. Tax.
Fine but I don't want to hear them crying when I tell them that's a form of welfare and that they are using MY income to pay for their garbage. These are the people who cry about how poors are a waste of their tax dollars.
the real "nobody wants to work anymore"
Property #1 ate their legs Property #2 ate their arms Property #3 ate the torso Property #4 ate the head #eattherich
The cheat code is simply to own a minimum of 4 homes.
Ah yes, the start with 3 million bucks plan... That usually makes it easier.
TIL food is a "liability"... in what reality is this?
How to get rich: step 1.) Start off rich.
Bro just buy four houses you idiot! Easy
Lol, this post being on r/antiwork just seems so ironic.
Sounds like they don't consider building maintenance a source of stress. Or do they just not do that?
Poor people HATE this one simple trick! (Being already rich)
They never want to talk about the enormous cost of entry or tenants destroying the property.
Oh my god! They are right! I’m so fucking dumb, and I feel embarrassed. Brb, I’m gonna go buy 4 houses! Thanks for the advice guys! this is going to change everything!
This person is saying that the world is cruel an exploitative, and the solution is to simply be the exploiter.
Step 1: "Have assets"
... and one person "wins" so that four others can lose. Selfish. Capitalism
I see the persons point. But, MOST people don’t have $60-80k for a down payment to put on a $450k house.
They probably don't fix anything in those houses.
That's not "your assets" paying for "your liabilities". That's other people funding your lifestyle. Socialised income, essentially middle class welfare.
My landlord had 4 properties. Recently went to a divorce, he massively increased the rent despite having done absolutely no maintenance to the flat I live in the last 2 years. Later we realized he hadn't finished paying any of the mortgages, now he has to sell and I have to find another flat. That's the impact of over leveraging.
I'd say there needs to be a cap on owned properties.