All Forum Posts by: Yuqing Xiong

Thank you!

Thank you all for your responses and insights. 

I was wondering how the finances work for buying a property and renting it out. When I do the math on renting out a property, like in Texas, for a 1 bed and bath and compare it to the median rent for the area, the rental income doesn't cover the entire mortgage, property tax, fees, etc., of the property itself. How do people then generate a monthly rental income? 

I'm sure the numbers are more favorable if you completely own the property and don't have to do mortgage payments or have some other bond or something to cover the mortgage payment cost. But for someone who is starting out to buy their first property with only money to let's say cover a down payment of 20% for the property, how does the math work out to cover the cost of the property from rental income? 

Thank you all for your insights! 

Thank you for the advice and example! 

Curious to hear people's thoughts on whether or not to look into property investments in the Boston area, most likely the suburbs since Boston city is way too expensive. I'm interested in looking for a 2 bed and bath house in the suburbs that's not too far from my workplace. Areas like Jamaica plains, Brighton, and Allston seem like good places. The median rent for those kinds of places is 3.5k/mo. 

However, I also have student loans of 123k with fixed interest from 4.3-6.3% and a car loan of 25k at ~8% rate. 

Is it even feasible and advisable to try to purchase a house to invest in? I would be living in the house with 2 other roommates to hopefully offset the mortgage and other expenses. There is also the thing of a physician loan where I wouldn't have to put a down payment on the house and secure a loan although I would want to try to aim for a fixed rate (or maybe variable since interest rates are potentially going to be cut in the future?) 

Hoping to hear other people's thoughts and suggestions, especially those of you who are or have been in my shoes before. 

Thanks