Prob half of homeowners are in that same boat. It’s going to create a lot of new landlords too when they realize they can hold their 2-3% rate and make double their mortgage payments on rent. This will lead to even less inventory sadly. I rarely recommend people become landlords with just one house but when you’re making double your mortgage payment it’s hard to lose in that situation if you screen very well for tenants.
I’ve posted this website before and it’s only in certain markets. But you can search properties with Assumable loans here. Great deal it seems to save 2-3% on the balance of the mortgage. You have to take a loan out for the down payment or pay cash.
I’ve thought about that as well, but like you said, you’d really have to screen VERY well for tenants. Our current home is too high end to be rented IMO, unless we landed the ideal tenants. Its not the greatest thing since sliced bread, but the risk & cost of replacement would be too great… I mean some of the materials alone wouldn’t make sense for most rentals (in our area anyway). Custom cabinetry, higher grade granite, solid wood floors, quality interiors doors & casework, nice appliances, etc. Even with a significant deposit that would do absolutely nothing.
That is a common issue as well… these home are always at top dollar and we would immediately do some sort of renovation. So where is the value in that?
That used to be the case but in today’s world a lot of high earners are renting. They don’t see the value in being tied down to one location. Rather invest the 1-2 million elsewhere besides the inflated real estate market. Simple interest alone on 2 million would pay rent for most areas on a very nice home.
And as for damages, if they’re high earners and have good credit you can litigate for more then the security deposit if they damage things. It’s not ideal but I’d rather sue someone making 500k a year with an 800 credit score than a bum tenant. The odds of collecting the judgement are exponentially higher.
I hear ya and that works if you’re in the right market. You’re too accustomed to the Miami area and what life is like there.
Our area we are in the upper tier of earners and the higher end real estate is more of the exception and not the norm. The market for higher end rentals is small here…
