[yojo]

I’m one of those mom and pop owners. The decent ROI on renting out my starter home financed me adding an ADU to the lot, which I also rent out.

I’ve owned the house long enough that I’ve had several tenants churn out when they buy their own houses.

This doesn’t feel like a policy failure, IMO. Renters have the option to live in a free standing home while they save for a down payment, and “investors” have an incentive to increase density/add to the housing stock.

Not everyone is at a point in their life where it makes sense to own a home. It feels weird making a judgement that these people should be required to live in apartments.

[hk1337]

I don’t have a problem with it. I pointed it out because it seems to show Blackstone hasn’t bought up all the houses like people think.

People should rent what they can afford and need. Some people need the house with all its space, some only need an apartment.

The big thing is people shouldn’t be spending 50% of their monthly income on rent. It doesn’t help them, their family, or you. Likely, eventually, they’ll have trouble paying, you’ll have to evict them, their lives will be disrupted, their families lives will be disrupted, and you’ll have to spend time evicting them and finding a new tenant else you’re not making money.

[yojo]

Agreed. I look for tenants that aren’t spending more than a third on rent. At $1300/month, that puts it right on median household income of $48k for the area (this is in rural northern CA).

I have no interest in ever evicting anyone, it sounds like a nightmare for everyone involved. I like my tenants, and my rents go up rarely and below market rate/inflation.

[mystraline]

You're completely off the mark on this, and speaking like a landlord.

> This doesn’t feel like a policy failure, IMO. Renters have the option to live in a free standing home while they save for a down payment, and “investors” have an incentive to increase density/add to the housing stock.

First, when you have a renter, your payment is the "mortgage + tax liability + chunk of profit usually 25-50%"

Nobody, except for IT can save in predatory environment like that, no matter how much you wish it so.

And you're double-dipping by having THEM pay your mortgage and handsome profit on top. And for what? A "let them eat cake" comment. Im sure someone paying 50% or more their income can 'save for a mortgage'.

Knowing this scam, by the time they save up 50k, the bank will demand 100k down. But landlords can just capitalize on existing equity. Its a scam, through and through, that punishes renters.

We do need residences. And they're simple to build. They're called "rent controlled apartments". But 'ewww socialism' rears its ugly head.

[insane_dreamer]

> "mortgage + tax liability + chunk of profit usually 25-50%"

25-50% is absurdly false.

We own a second home which we've rented out for years (wasn't the original intention, but anyway ...). The rent covers mortgage, taxes, and upkeep. Profit is minimal, less than 10%. Once you factor in eventual renovations, like replacing the roof, floors, etc., there is no profit at all, or very little.

[mystraline]

Go read the briefs from the Realpage lawsuit, and maybe you won't consider me much the fool.

I keep getting anecdotes as some sort of glorious rebuttals. No matter. When the people are at their last end and the guillotines come, I will not shed a tear.

[bpt3]

Please point me to the brief documenting that those landlords are making 25 - 50% profit.

And I see you showed your true colors with your second comment. I'm sure if the revolution you're praying for actually comes, you'll definitely be in the vanguard!

[insane_dreamer]

enjoy the show!

irrelevant fun fact: people think that the vast majority of those who were visited by Mme La Guillotine during the French Revolution were nobles. In fact, the vast majority, ~85%, were from the "third estate" (commoners, which also excluded clergy).

[blitzar]

> your payment is the "mortgage + tax liability + chunk of profit usually 25-50%"

You would have to be yielding 10%+ on your rental to get anything near that. In my part of the world - rent is cheaper than the interest the mortgage would bear.

[bpt3]

> First, when you have a renter, your payment is the "mortgage + tax liability + chunk of profit usually 25-50%"

You think landlords make 25 - 50% profit on a SFH rental unit? You're so comically wrong that there's no point in discussing the rest of this post (which is basically a list of every failed housing policy in existence).

Allow builders to build more units. It's that simple, which is part of the problem for some people.