Asklemmy

Here’s your error: you’re assuming the mortgage will never be paid off. Which just isn’t true.

That's not at all what this conversation was about. It's about upfront costs.

You know what corporations do with a property that doesn’t make money? Either they find a way to kick out the current residents to raise rent. If that is not possible they sell. A corporation doesn’t give a shit about you still living in the building before selling.

Making money off the renter isn't needed when they can make money off of selling the property.

Even if they were paying out of pocket the difference would be interest, not some magical 33% as you suggest.

I never suggested anything of the sort. Please read my words better.

Not sure what you are smoking but with a 25 year mortgage my calculator says that’s ~2k a month (without interest).

You are insane. You've dropped interest from your calculations entirely. It's like saying "I put in a 580,000 dollar down payment and now the monthly payment is 0 so checkmate!" Try to put a decent interest rate on that like 5%-10% Which the average for my area is 7%.

We can talk about the math when you come back with numbers that add up.

You literally ignored the interest which I gave the numbers for. You need to read better if we are to have a conversation otherwise this is pointless if you are going to drop one of the major components that make up the final monthly payment.

If your mortgage numbers are correct then you are probably also correct in that the owner would be running a loss on the property (a steep one at that) assuming they are still paying a mortgage on it.

They aren't paying a typical mortgage on it though. Because they get a large business loan with a smaller interest rate overall to cover it then they build a portfolio from that and use the cash flow to buy properties outright for cheaper overheads than renting. So they then charge the renters a cheaper rate than the mortgage they could get. This is why renting entirely is important.