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0 pointslallysingh7y ago0 comments

The markets for owners vs renters is different. People with the means will buy if they have reasons for staying in one place for a long time. They will rent if they don't. That can depend on the local economy, schools, livability of the area, industry trends, etc.

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anoncoward1117y ago

Here on Long Island, NY, renting with one roommate is infinitely more profitable than owning a house:

Renting = $1,900 a month for brand new construction, centrally located 1br apartment including utilities

Owning = $3,300 a month for 2br dilapidated house, inclusive of property tax, home owners insurance, massive utility bill, and I haven't even factored in repairs of equipment from before 1960

Sure, you could rent out your basement and your bedroom for an extra $1500, but now you are running a hotel and have to report that income :)

voicedYoda7y ago

Just as a slight clarification, if you set yourself up to rent part of the house, you could convert ownership of the house to an llc, or soon legal entity, and then that organization collects rent from you and tenant, which pays the mortgage, property taxes, utilities, etc. Do this only if you intend to rent portions out, as it can reduce liability. Ymmv and ianaa

anoncoward1117y ago

Nice house hacking! Just be sure that you can quickly and easily prove that you as a personal entity still have ownership over the deed to the property, which is owned by your sole-partner LLC or etc

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lostmsu7y ago

Why do you need an LLC for that? Apart from liability.

lallysinghOP7y ago

Yeah owning there only makes sense if you want to live there a long time.

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anoncoward1117y ago

Here on Long Island, NY, renting with one roommate is infinitely more profitable than owning a house:

Renting = $1,900 a month for brand new construction, centrally located 1br apartment including utilities

Owning = $3,300 a month for 2br dilapidated house, inclusive of property tax, home owners insurance, massive utility bill, and I haven't even factored in repairs of equipment from before 1960

Sure, you could rent out your basement and your bedroom for an extra $1500, but now you are running a hotel and have to report that income :)

voicedYoda7y ago

anoncoward1117y ago

Nice house hacking! Just be sure that you can quickly and easily prove that you as a personal entity still have ownership over the deed to the property, which is owned by your sole-partner LLC or etc

1 more reply

lostmsu7y ago

Why do you need an LLC for that? Apart from liability.

lallysinghOP7y ago

Yeah owning there only makes sense if you want to live there a long time.

j / k navigate · click thread line to collapse