- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Is renting single family homes no longer profitable?
Posted on 7/4/26 at 7:46 pm
Posted on 7/4/26 at 7:46 pm
Looking at single family homes prices in BR vs rental cost per SF it seems like after putting a 20% down payment I would only be able to pay for my monthly payment, insurance, and property taxes with what I could charge for rent per month. This leaves no extra income for repairs and vacancies. Is anyone actually buying and renting homes right now? Even for those who are wouldn’t it be smarter to put that money in an S&P fund? I know they say it’s always better to buy yesterday than today so is it just playing the long game buying today and taking a monthly loss while waiting on capital appreciation?
4
Posted on 7/4/26 at 8:30 pm to Redstickbaw
Housing costs are inflated and mortgage rates are high. Yes it costs too much to be a landlord for now. But anyone who got in 6+ years ago is doing fine
Posted on 7/4/26 at 8:39 pm to Redstickbaw
Buying a home right now as a rental is a bad financial decision unless it's a fixer upper priced right.
Posted on 7/4/26 at 8:43 pm to Civildawg
quote:
unless it's a fixer upper priced right.
Too many fixer uppers trying to use a recently flipped house to establishing their asking price in the market right now
Posted on 7/4/26 at 8:55 pm to Redstickbaw
My friend's husband makes good money from his work. They bought 2 new construction houses for @300K each, 20% down, Rent they're collecting is 2100/mo. Some of that goes to the realtor girl bc she finds the renters. She tells me he's upset saying they make nothing. She's simple minded and watch too much YouTube getting brainwashed into these business ideas without properly crunching the numbers.
Posted on 7/4/26 at 10:05 pm to lsu xman
quote:
They bought 2 new construction houses for @300K each
way too much for a functional/profitable rental. just dumb.
quote:
Rent they're collecting is 2100/mo.
and there it is. a sub 1% RTV. all mine are 1.5% to 2% RTV.
i sold 4 last year and 1 this year thus far.
the issue is they do not know how to calculate positive cash flow or COC return which is what matters in these types.
another issue is if you cannot buy right then do not buy at all. lots of things went to shite from covid on. rent ready expenses, maintenance expenses, plus interest rates went through the roof.
now if you got in when i did i was able to go from very good PCF to great by raising rents and getting cheaper insurance policies plus great PM rates.
however even getting in at the right time with great numbers still does not mean you cannot take a beating or have a bad year. a combo of a few evictions, rent ready fees and some big maintenance can hurt your cash flow.
if you bought wrong it can knock you to your knees. you need to know WTF you are doing.
Posted on 7/4/26 at 10:11 pm to Redstickbaw
yes it can be profitable but not in all areas. the country is made up of hundreds of micromarkets. do some research. i do not have time to go through it all again. i invest where it is profitable for me.
here read this
LINK
here read this
LINK
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News