Re: Buying a home then renting it out
Help me understand this from a financial point of view.
It seems, to me, that the only benefit of buying and renting (since the rental income only covers ongoing costs and not the home price) would be to lock in a lower price for the home than it would be down the road. Or maybe to lock in a certain neighborhood instead of one of the newer ones yet to be built.
BUT
As those that bought in 2006 can probably attest, there is no quarantee that you can buy for less now than later. With 100,000 population and approx. 60,000 homes it stands to reason that there will always be resales on the market regardless of the allure of TV.
I've toyed with the idea of buying now since the prices have dropped (approx. 18% from their highs in my tracking of homes I'm interested in) but if you factor in either the mortgage cost, or the cost of money if you are paying cash, then i don't really see the need to rush.
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