Updated 19 days ago on . Most recent reply
Lower Your Rent, Make More Money
When is $3500 greater than $3800?
Accidental Landlords keep telling me the same thing: "My PITI is $3800. I need $3800 in rent."
No, you don't. And thinking that way is costing you more than any negative cash flow would.
Rents are market-driven. Your mortgage payment has zero influence on what a tenant will pay. The market doesn't care what you owe.
Do the math.
Eating $300/mo negative cash flow for 12 months = $3600.
Sitting on a vacancy hoping some unicorn tenant shows up willing to overpay?
Three months empty, even with a modest mortgage, easily tops $6K.
Four months? You're looking at $10K+.
One solution: a lease option rather than a traditional lease. A tenant/buyer rather than a tenant.
Non-refundable option money rather than a refundable security deposit, You have a tenant/buyer with skin in the game from day one.
Fighting the market is the most expensive strategy there is.