"Rod Speed" wrote in message ...
Sandra Loosemore wrote in
message ...

A couple comments....

When you rent, your landlord still has to pay property taxes,
mortgage, maintenance, deal with less than 100% occupancy
and/or deadbeat tenants, and make a profit besides.

Not necessarily on that last. Some just use rental property
as a way of getting a return on their investment and the
entire concept of 'profit' doesnt really enter into it.

Profit doesn't enter into the concept of RoI? Strange accountant you
are.


They certainly need to achieve a surplus over
those costs, but thats not the same thing as profit.

You just said that profit doesn't enter into it but now you say that
to have a successful investment in rental property you need to have a
P&L NPBT?

Make up your mind.

Do you think those expenses aren't
just getting passed on to the tenants?

Corse they are most of the time. Not always tho,
particularly when the market for rental property is poor.

If the investor has a negative cash flow and exhausts the working
capital, then the investor will either have to sell the property or
increase the rent. Very simple math.

When you buy your own home, you at least
cut out the expense of the middleman.

Its more complicated than that, particularly when the
property is fully paid off so there is no mortgage cost.

The OP is correct - when you own a property you cut out the landlord -
technically, you become your own landlord and the benefits (and risk)
are yours.

js