The financial and logistical dynamics of renting, are nicely consistent with those of index funds. We don't discuss this often, but I'd not be surprised to learn, that folks who champion landlording, also with some high correlation prefer individual stocks. Both impart a sense of control and of personal involvement.Apartments have scale. SFHs do not. Totally different economics.Very interesting that many Bogleheads prefer to rent vs own. However, when someone asks about renting their home out the majority say don’t do it, it’s a headache dealing with tenants.
There’s a reason so many apartment complexes exist, they earn a profit if properly managed. Do your research and be honest with yourself.
Most "should I rent or buy" questions here, get answered with "rent". The rationale, is that respondents are very conservative regarding the risks of ownership, the money being tied-up, and most importantly, what happens in case of job loss or sharp recessions or other such calamities. For the related question, of "should I sell or rent-out", the usual answer, leaning towards "sell", is some mix of landlording-headaches and the opportunity cost of the money tied up in the rental house.
One dimension is to consider the size and disposition of one's paper-asset portfolio. If large, and something like our much-hallowed "3-fund" variety, then perhaps landlording is a compelling diversification, even if there are headaches in doing it, and opportunity costs too. For some of us, who currently rent, the OP's situation is, without being flippantly tart, a nice problem to have!
Statistics: Posted by unwitting_gulag — Thu May 30, 2024 9:20 pm