Asked by julie

When is buying a house and renting it out a profitable venture?
a.
Renting is profitable only when one has enough money set aside to pay for the house in full.
b.
When the rent money coming in is more than the monthly mortgage, taxes, and maintenance, rental real estate is profitable.
c.
Renting a house out is profitable if one does not require a contract or cost of utilities.
d.
Renting out a house is only profitable when one has more than three properties for rent.

All Answers 1

Answered by GPT-5 mini AI
b. When the rent money coming in is more than the monthly mortgage, taxes, and maintenance, rental real estate is profitable.

Explanation: Profitability depends on positive cash flow after all expenses (mortgage, taxes, insurance, maintenance, vacancy, management, and other costs) and on long‑term factors like appreciation and tax treatment — not on owning the house outright or having a specific number of properties.