I was having an interesting conversation today about the notion of a person buying a house that you would need to get a mortgage on like most people. However, in this scenario paying off the mortgage would heavily rely on not so much your regular job but the income you would earn by renting a portion of it out like the basement.
Example, letâ€™s say your mortgage payment was $3000/month. Basically, you were heavily relying on the fact that you would rent the basement for about $900/month and to another two people who you know well to live in the spare upstairs rooms for about say $600/month each. So in total, you would have to pay about $900/month. Sounds all good, but then what if say one of your tenant leaves which makes you stuck for at least a months worth of pay for the mortgage? Of course, in this situation letâ€™s assume that you have nowhere near the $3000/month after other expenses and so you are heavily dependent on the rental income.
So in that scenario, would you think it is a better option to go with this route or say play it safer in life and just say rent a place for $900/month? To me honestly, the risk in many ways is almost the same I think personally. Cause even with say renting a place that is within your means whoâ€™s to say that something wonâ€™t happen to say your job or business?
It seems like it is more about having a lot more responsibility with the house option as you need to keep track of so many things. In general, I think owning is a lot better in the long run.