How can you make money on expensive houses?

Question

According the 1 % rule the monthly rent has to be 1 percent of the purchase price of a house.

When you buy a house for 250.000 dollar does that mean the rent will be 2500 every month?

Who has experiende with this numbers by yourself?

I look forward for your comments.

Dennis Meppelink from Holland

Patrick Liska · Answer

that's where you have to know the area and what you can get for rent. I'm sure some people do get that, you are relying on people that just do not want to own a house and would rather just rent and not deal with all the expenses. you can buy that house, i know not everyone can come up with 20% down payment, but if you did and your mortgage was $200,000; your payments would be about $1000 per month plus taxes, insurance. some people would compare the $2500/ month rent vs buying and opt to buy a house instead. Could you get it ? sure may be tough to rent depending on the area.

How can you make money on expensive houses?

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