How did you afford the property then?
I don't think you quite understand how easy it was to get a home right before the mortgage market collapsed.
Are your mortgage payments really low enough that you can make a large enough profit to live off of from rental income?
Is it a condo or a house?
It's a two-family house that's divided as a condo. It's right near Tufts University, so there's always strong rental demand. And after taking a look at the other rental properties in the area, it's unusually nice for what it is.
Mortgage payments are slightly less, all considered, than the rent. But you have to consider that a good portion of that payment goes towards building equity in the house, and you have to further consider the enormous tax benefits from owning a home. That part comes in incredibly handy thanks to the ugly double taxation I suffer as a freelancer.
I don't live off of just the rental income. It's a supplement to what I make through writing. Writing income is spotty -- one month I can get paid a lot, the next I might get nothing. The rental income is always a solid, reliable check every month that at least keeps some money flowing through my bank account.
I'm also curious how you and Torie and opie's families find good tenants. Hardly needs to be said that it makes all the difference in the world. So many people are destructive or unwilling/unable to pay rent on time. People with higher incomes overextend themselves and fall into financial traps just like everybody else. I don't anticipate having the funds to become a landlord. Just nosey.
Haha, the way my family find renters has traditionally been - effortlessly. As far as I know they never advertised or anything like that. They only rented through extended networks in the community or simply people who dropped in. As far as I know my father never even owned a 'for rent' sign.
Several factors probably helped - 1) he was always enormously cheaper than the 'market rate', 2) he kept everything up much better than average, and 3) he had a curious personal reputation - a rather complex one, but one which was quite attractive to most renters.
My current renter is actually someone that I knew prior. I was moving to Los Angeles, and he was in need of a new place. I already knew first hand that he was a responsible, reliable person. It worked out quite well, really.
Of course, I follow the Torie tact -- my rent is cheaper than market and the property is much better kept than average. We have a yearly landscaping expense built in and everything.
