WF: Is buying and renting an apartment more profitable than buying and renting a house?
Does anyone have knowledge on this. In general, If I bought a room (not the whole apartment complex) in an apartment and rented it out at market price, and then sold it. Would this be more/less profitable than doing so with a house? what are some potential complications with this idea?
Answers and Views:
Answer by sohang R
apartment is easy to deal than house.apartment is profitable due to it’s market demand and ready customers but depending on it’s position .
Where in the world can anyone buy one room in an apartment?Answer by ibu guru
You cannot “buy” an apartment. Neither can you “buy” a room within an apartment. You could buy a condo, but many have restrictions on renting out condos in the complex. Some are owner-occupied only. Some restrict the percentage of units that can be rented, so you could only rent out your unit once someone else stopped renting out theirs.
Renting out condos is rarely profitable. The monthly condo charges make that nearly impossible. By the time you pay mortgage and monthly fees, etc, rents hardly cover it all.
Renting out houses is the most profitable, if you can purchase a single-family residence as a rental. Few people can afford to buy themselves a second house, which keeps the stock of rental houses fairly low under most economic conditions. And with the tenant responsible for all maintenance, indoors and out, there are few expenses beyond your mortgage, taxes, insurance.
Next most profitable is an apartment building, if you have a desirable property, maintain it well, and get really good tenants.
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