Does Real Estate By The Numbers Explain Rental Property Math?

As soon as I graduated from university, I suggested to my three roommates that we should rent a place together. The place I found was near our workplace, and it was cheap as well. It was much better than the house they used to rent in the suburbs. During the first three months of renting the place together, everything seemed fine. One day, I got off work early and heard them talking in the living room. "I did some research online. The rent of the houses in this area is at least 2 grand a month. But ours is only 800 dollars a month. How about we rent the master bedroom out for 800 dollars? That way, we won't have to pay any rent." "Alright, I'm in! Why does Jessica always get to sleep in the master bedroom? Even if she covered all the bills of this house, how much would that cost anyway?" "I've had it with her arrogant attitude. Thinking of her being homeless makes me want to laugh!" I laughed inwardly. 'You want to see me homeless? But I'm the landlord!'

"I've transferred the three hundred-dollar rent to you. Thanks, Samuel." A contact named Misty has sent my husband, Samuel Tucker, a message on WhatsApp. I snatch his phone immediately, only to be stunned by what I see. "Rent? Samuel, you told me that this is the income you earn from your part-time job!" Samuel's expression freezes on his face. Then, he tries to snatch his phone back. "Darling, my brother has already passed away. It's difficult for Misty to raise two children on her own…" As I caress my tiny baby bump with a hand, I feel my heart sinking at his words. "Which residence is this rent for?" Samuel parts his lips hesitantly. A long time later, he finally tells me the residential area's name. I'm completely flabbergasted at that point. The luxurious apartment sitting in that particular area is an asset that my deceased parents have left for me. Also, the rent there is worth 10,000 dollars. Yet, Samuel has rented it out to my widowed sister-in-law, Misty Patterson, and her children for only 300 dollars!

My sister-in-law keeps calling me a deadbeat, swearing I just drift around in slides with an iced drink glued to my hand. She's always stirring things up at home, running her mouth about me to my wife day after day. What she doesn't get is that this is just how landlords in Galanor roll.

“Three hundred dollars for rent just went through. Thanks, Claire.” A text popped up on Claire’s phone from a contact saved as “Mark.” I grabbed the phone before she could react and froze. “Rent?” I asked. “You’ve been telling me every month that money was from your side job.” Her face went stiff. She reached for the phone, trying to take it back. “He was my sister Emily’s husband,” Claire said quickly. “After Emily died, he was left with two kids. I was only trying to help.” My hand brushed against the anniversary gift in my pocket, and something inside me went cold. “Which apartment is he paying rent for?” Her lips parted, but it took her a long time to answer. When she finally did, she gave me the name of a neighborhood. My ears rang. It was the downtown apartment my parents had left me. A spacious unit that could rent for ten thousand a month at market rate. And she had leased it to her widowed brother-in-law for the absurdly low price of three hundred dollars.

While visiting a property development with my fiancé to buy our first home, I ran into a two-faced real estate agent.   She showered my fiancé with compliments, praising him for being young and successful enough to afford a Rolls-Royce.   Then, she suggested I was a fake socialite with a knockoff designer bag, implying that I was just using my charms to snag a free house.   When she found out the property was meant to be a marital home, her voice grew loud enough for everyone nearby to hear.   “I just think the sugar daddy who bought you those two properties last time treated you pretty well!” “Oh, wait. Miss Gwen, don’t you have several sugar daddies? Do they all know about each other?”   I chuckled. What she didn’t know was that my “sugar daddies” were my godfathers and I really was a socialite.   The kicker, though, was that my so-called wealthy fiancé wasn’t rich at all. In fact, he was just a scholarship student I had been financially supporting!

Because I was a cheapskate, I rented a cheap apartment. The catch? Someone had died in it. The soundproofing of the house was bad, and I could hear my neighbor’s wife moaning every night. But my other neighbor told me that there was no one living in the apartment next to mine.