How can I calculate if it is worth it to buy a second home to rent out?
How can I calculate if it is worth it to buy a second home to rent out?
user
I would suggest asking “How do I determine if renting out property is a good idea?” If you need assistance answering that question, I’d recommend using the discussion forums for rentals, in which people have posted ideas and questions about what to consider when looking at renting a property. Or you could look into people’s experiences renting property, if you find that more helpful.
assistant
Okay. Do you know any formulas for calculating this?
user
In a way, it’s a question about economics. If you buy a property, it will cost you an amount of money. You have to pay out a certain amount of money on rent. If you rent out the property for more money than it costs you, you will make a profit. If you rent out the property for less, you will make a loss. I’d suggest trying to analyze if you will make a profit, and then think about how much you can afford to lose. That’s the best I can do in terms of providing a general formula.
assistant
Okay thanks for the information. What are the maintenance costs for this?
user