If you are renting right now you may have been asking yourself
whether you should be one of the millions that are getting into
their own homes. You may have found calculators on the web to
tell you whether it is more cost efficient to buy or rent. I have
another solution for you that will make you the most money. Buy
a duplex or triplex or fourplex and rent out the other apartments
and you live in the nicest one. The bonus to this is that you
will have the other tenants paying for your mortgage and you will
be able to have an investment that will be paid off in 25 years.
Okay here's the numbers from my home town, Ottawa.
| Rent for a 3 bedroom apt |
$900 |
| Rent for a 2 bedroom apt |
$750 |
| Rent for a 1 bedroom apt |
$580 |
| |
|
| Cost for a 3 bedroom house |
$230,000 |
| Downpayment for 3 bedroom house |
$11,500 |
| Mortgage Payments for 3 bedroom house |
$1270 |
| |
|
| Cost for a nice fourplex (1-3, 2-2, 1-1 bdrms) |
$300,000 |
| Downpayment |
$15,000 |
| Mortgage Payments for fourplex |
$1657 |
| Rental Income |
$2080 |
| Total Income after Mortgage Payment |
$423 |
As you can see you can do quite nicely from a fourplex. You can
make 423 a month in income. With that money you could pay someone
to take care of the property management. That way you could have
the free mortgage without the headaches.
Real-Estate-Haven
