A friend of mine brought a $200,000 new KB house with the intent of using it for investment.
I believe its a 15yr mortgage, with high monthly payments.
For a while he had people renting it for a decent amount, but since January the house has been vacant, and he is left paying the mortgage whilst he pays monthly rent for his apartment.
Therefore, in what way is this an investment....if he planned on making $X profit, surely this is now being drained away in mortgage payments & maintenace of the house ($500 gardening/month).
I also believe that the profit he planned on making is not going to be anywhere near what he had first planned because this house has been ont he market for 4 months, its in a not very nice neighbourhood, and he's reduced the price once and is being asked to reduce it again.
How on earth is this profitable???
2007-06-08
04:42:59
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10 answers
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asked by
Anonymous
in
Renting & Real Estate