76. Make $1,000+ per month Rent out your house for double the mortgage price or buy a foreclosed property you rent out for double the price Become a millionaire
Rent out your house for double the mortgage price:
This is a tricky numbers game, but can work nicely.
Let's say you purchases a 2 bedroom 2 bath, 1200 Sq foot house. You own it. You pay a mortgage of $1,000 every month. Place an ad on craigslist.com with pictures of your house for rent for $2,000. If you get hits, go to the houses (or apartments) for rent section and see if you can rent another house (or apartment) for $1,000 or less.
The cheaper you can rent another house (or apartment), the more money you will make. So now, the money you are getting on you renting your house is not only paying for your mortgage, it is paying for your new house (or apartment) rental too! You have no more payments. Again, you aren't making money, but not having a mortgage or rent payment is HUGE if you ask me.
Make sure you do your research. Craigslist is an easy way to do market research as it is free to post an ad. If you get a lot of hits, take the next step. The nice thing about this one too is that you are the landlord. If you dont think this is working, as long as you give your tenant proper notice, you can kick em out!
You can also rent out your house (with mortgage) and live smaller (you rent an apartment for instance), while your mortgage and rent is fully paid.
Buy a foreclosed property you rent out for double the price:
Another variation of this idea, is to buy a foreclosed property, let's say costing you $1,000 per month, but which yields $2,000 per month of rental income.
For example, a 4-bedroom (foreclosed) house with a $1,000 per month mortgage can be rented out for $2,000, 4x times $500 in rental income.
You can check out the rental prices of neighboring foreclosed properties and find out which foreclosed property, which sells at 30-50% discount, is interesting to rent out.
The result if it works, you build up home equity in the foreclosed property (it's an investment that grows) plus you get additional rental income from renting it out.
There are also foreclosed properties which you can rent-to-buy, you could place an ad on Craiglist on these properties to find out if you could rent it out for double the price. Do a search on the internet to find foreclosed properties that are rent-to-buy.
Even if you can't rent out the mortgaged properties at double the mortgage-cost, if you purchase 5 properties for $100,000 each over the next few years, then in 20-30 years time, once they are fully paid off, you have amazed a cool $1 million. Your properties will appreciate by 3-4% per year according to the inflation rate, unless there is another real estate collapse as we experienced in the past, which is unlikely to happen again. Your rental income will also increase by 2-3% per year as a result of inflation-adjustment (while your fixed/variable-rate mortgage stays the same) so in 30 years time, your rental income will be twice as it is today, or twice the current mortgage payments.
You could also rent them out to family or friends or place an ad on Craigslist.com.