>get a loan for a nice suburb house >20% up front payment

Yes however,

>get military VA loan,
>no down payment
>live in small bed room
>rent out master

>>1608929
Now repeat this 100x
Why don't people do this?

yep

also another option is get roommates/borders
but best option is buy a place with a granny flat or bungalows and live out of that rent free.

>>1609096
Because banks do not give out loans to Neets for that type of house.
Because it is not that easy to get a tenant.
Because being a landlord is a side job and paying a property management company comes out of your costs.
Because taxes on rental property is higher than personal property.
Because the wear and tear on rental units can eat up profits easily.

Yes, rental units are and will always be profitable but it takes some skill and free time to be able to make real money off it.

The people who are actually making money on rentals are the ones who are putting much more down than 20% up front so the mortgage cost is significantly lower.

Let's say you buy a great 100,000 suburban house, perfect for a family on a relocation. You put 20% down and have a 3.6% loan (be honest, you're not getting the base rate if you're on 4chan). Taxes in america are around 1.6.
That monthly payment on the mortgage and tax is $580. Then you have to have to fix up the place to rent, so that is a sunk cost of 5+10k.
Closing costs and title costs are probably 4-5k.

And then your rent in the small apartment is what, $400?

Meanwhile, serial investor A can put down 500k on comparable lot of houses in a development at a base rate loan much lower and get 6 houses. His rent just needs to break even so he will probably drive the cost way lower in comparables and people will wonder why you're anything worthwhile.

So your dream of a 1k a month house rental probably goes to 700 or lower.

It rains and your basement floods, who pays for it? There goes all you were saving all year on the $150/mo profit.

Rent is a complicated game.

>>1609111
>have a 3.6% loan (be honest, you're not getting the base rate if you're on 4chan).
you won't get anything like that for a rental unit.

if your mailing address is different from the address of the house you're borrowing against you can expect to pay over 8%.

because buying rental property isn't a home loan, it's a business loan. Also expect your insurance to double and your taxes to more than triple.

>>1609096
Because the interest rate in my shit country is around 20℅ and for too little time

>>1608929
In my country, if you live in half the home, you pay zero tax on rental income. Now there's a good way to boost capital.

>own a property in mexico
>really nice property
>nearby church and plaza
>below is an garage converted storefront
I'm making 2 time income from a single peice of property by putting the leasers under a year contract so if I ever want to go back I could just choose not to renew the contract with then, refix up the building to build value and I don't have to worry about never getting person to be paying for the property since theres no so many religious people who want short walks or post graduate teens who want to be near plaza
I haven't had to pay for a repair in years if you make sure that the building is the cleanest in the continent by getting Betties

Would be great but in North\Central Jersey houses are expensive AF and property taxes are some of the highest in the nation

>>1608929
Just don't forget to save up for unexpected issues like the water heater going out, the roof leaking, tenants not paying, etc.

>>1610414
Do property taxes correlate with higher rents?

>>1609109
I actually live in what americans call a Granny suite. It's a ~40m2 house in the backyard of a bigger family house. I don't interact much with them, besides the occasional joint bbq and such.

>>1609111
It was such a lucky shot I got the loan after all, being 24 at the time. But things have changed in my country in the last 4 years, the economy is much worse.

>>1609113
I don't know how taxes work in the US, here I only pay around $200 a year for the house.

>>1610414
It's very expensive for me actually, I make the equivalent of US$36k a year, the house was $120k. But being single I don't have much expenses.