In a recent rental investment class, one of the students said that he had a property where the tenant had been there for over 25 years. The class was amazed but not as much as his next statement “My tenant actually paid for the home for me.”
Each payment on an amortized loan pays the interest due and reduce a portion of the principal so that at the end of the mortgage term, the debt will be completely paid.
It may be unusual for a tenant to be in the same home for the entire term of the mortgage, but regardless of how many different tenants a rental has over time, they will pay for the home for the investor.
Tenants who have the credit, income and down payment to buy a home but do not, are helping to buy the home they rent for their landlord. Whether you rent or buy, you pay for the home you occupy.
If you’re a tenant and want to know exactly what it will take to buy a home in today’s market, give me a call at (757) 288-0194. You may be surprised that the mortgage payment may be less than what you’re paying in rent now.
If you’re curious about having a tenant pay for a rental home for you, contact me at (757) 288-0194.
Who are you buying the home for, yourself or your landlord?