Is renting a waste of money?

10 Replies

So i am thinking about getting my own place.


Problem is i do not have sufficient income to get approved for a Mortgage, nor do i think i know enough to go and jump into one.

From places i have seen... i am going to spend around $1500 + utilities per month.

Would i be better of trying to get a paper-trail and a multi family building and just live in one?

It all depends on the numbers . 

If I didn't have a landscaping company and trucks and tools I would rent for sure. Probably a little one bedroom apartment for 600 or 700 dollars. I could make more money renting my home out.

Remember the difference between and asset and a liability.  Assets earn you money.  Liabilities cost you money.  Many people buy a home for themselves thinking they are acquiring an asset, when in truth it is a liability.  See if you can find a way to make your home an asset - maybe by buying a duplex, living in one side and renting the other, or even renting rooms in your home.  Otherwise, try to rent something inexpensive so that you can save up money to invest in profit-making assets. Better yet, if you are living at home, suck it up a while longer, and pocket that $1500 you would be spending on rent.  Cash in the bank = freedom, my friend!!

P.S.  what is a paper-trail?

Thanks for the post.

I think i may just have to suck it up a bit

I was going to attempt and do both.
Rent.. and have it make me some cash at the same time. Rent out a room in my rented apartment...

But, i realize that many landlords are completely against this so this is not an option anymore.

Then again, i also try and put myself in their shoes. When i eventually own, would i want my tenant doing that?

Originally posted by @Julia Rowling :

Remember the difference between and asset and a liability.  Assets earn you money.  Liabilities cost you money.  Many people buy a home for themselves thinking they are acquiring an asset, when in truth it is a liability.  See if you can find a way to make your home an asset - maybe by buying a duplex, living in one side and renting the other, or even renting rooms in your home.  Otherwise, try to rent something inexpensive so that you can save up money to invest in profit-making assets. Better yet, if you are living at home, suck it up a while longer, and pocket that $1500 you would be spending on rent.  Cash in the bank = freedom, my friend!!

P.S.  what is a paper-trail?

 Lol, it's my way of saying income or "Pay Stubs"

Odd jobs and side hustles aren't paper trails

The adage goes that if it does not make money it does not make sense/cents.  While this is the first thing you should check also consider your peace of mind.   Do you have the aptitude or attitude to be a landlord or homeowner?  Will you be able to sleep at night?  If the answer to that is no you may want to reconsider. 

I feel like it's time. Not because of society but myself. 

At times I think of waiting until my mid twenties and other times I think....

Why not now? Why am I scared? 

I don't want to be stuck in the "analysis paralysis"

@Lelith Walker  lol that got me a bit worried. Why wouldn't I be able to sleep at night as Landlord, is it horrible? 

Being a landlord can be stressful at times especially when you are new- not knowing how to choose tenants, treat tenants, hiring lousy contractors, etc.  Once you get the hang of it and develop better relationships, it can be easier for some, like me. Patience and diplomacy are necessary.

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