Are Landlords Wealthy and are Rentals a Good Investment?

 There is a Myth that Landlords are Wealthy, I am sure that some indeed, may be, I am not.

The Typical American is Mathematical Illiterate which is where I think this comes from along with piss poor business school teachers who's investment experience comes from watching MarketWatch, so lets do a quick breakdown.

Lets say you have the money to purchase a home for the astronomically low price of 149k and can afford to put the 20 percent down which is 29,800. IF you get a 30 year fixed rate at 2.75 percent with your typical taxes and insurance your payment will be 712 per month. I also should include your typical closing costs are 4 percent so your total down needed would be 35760 at closing.

Now lets say you it is a two bedroom house and you are pulling in 900 per month that leaves you a 188 per month to supposedly pocket bringing your total profits for the year to 2256. So Ten Rentals nets you 22560 per year. Provided you put the same down on each house you would have invested 290800 in down payments alone. That belies the fact that for each house if you were to pay for 30 years (Idiot if anyone does) you would pay 256320 for that house.

Now if you are lucky enough to keep those renters in for longer than the Six month lease., your profits go up, however every time someone moves out you are looking at some sort of maintenance and hopefully at the worst you will use their deposit and at other times if they go beyond their deposit then you will lose that extra money as they simply will not pay, so out of your pocket.

Now mind you, property does equate leverage however it also more often than not means debt,

So take that money, invest in a college education and stop your bitching about the abysmal "50k debt" you spent to make 50k Plus each year off that education.

Wish I had, I would be way better off in that regard, however I purchased Rentals as a means for retirement as I have noticed most people will lose their pensions and 401k is not retirement. So while I have managed to dedicate myself and push to do better than most, I am by no means wealthy. This post should also put down the fucking lie of "Buying two rentals and retiring" Look anyone in the face who tells you that and simply say "You are a liar, I can do math"