ilmscore | Prediction Details
"And let's assume that you can rent out the other three units for $1,300 a piece for one, two, and three units. Now you have a mortgage, but your costs are going to be subsidized through the help of your nice neighbors. That means your neighbors are going to pay you $46,800 a month, but again, you have property expenses. You have to pay for your property taxes. You have to pay for insurance. You have to pay for your maintenance. You have to pay for the management fee. Although yes, you could manage these units, but you still want to factor in a cost for that management fee. And then you have to factor in the vacancy cost because people will move out at some point. So let's assume again that about half of your revenue is going to be expenses. That means you're going to be left with around $23,400 a year after paying for your expenses, but you still got your mortgage. And if you go out and you put 20% down, you put $120,000 down on this property, you finance the other $480,000 at 6 12% for 30 years. Well, that means your monthly mortgage payment is going to be $3,000 a month or $36,000 a year. Which means you take this money, this $23,000, and you apply it to the $36,000. And that means your monthly payment out of pocket to live in this property is going to be around $1,000 a month, which means your mortgage payment to live in the property is less than your neighbor's rent."
By Minority Mindset | September 17, 2025 | Pending
From video
3 Passive Income Assets The Rich Are Buying Right Now (While You’re Working) 00:03:24 - 00:04:41
Interpreted Prediction
The speaker outlines a strategy for a 4-unit property purchased for $600,000 with a 20% down payment, where renting out three units at $1,300/month each generates $46,800 annually. After estimated 50% expenses, the net income is $23,400. Financing the remaining $480,000 at 6.5% for 30 years results in a $36,000 annual mortgage payment. The net cash flow of $23,400 subsidizes the mortgage, leaving an out-of-pocket monthly cost of approximately $1,000 for the owner to live in the fourth unit.

Prediction Details

Topic
Real Estate Investment

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