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Old Oct 12, 2004 | 11:11 AM
  #29  
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Tark
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Joined: Jun 2004
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From: Montréal, Canada
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Originally Posted by ISP James
dude what are you talking about? owning a rental property is a business... there is no business in the world that operates for very long without making profit. here is how it works...

say you rent both units at 500 each....

Revenue: 1000
Expenses:
Mortgage: 400
Utilities: say 300

1000 - (400+300) = 300 profits.

as long as your revenue is = or > your expenses, its a profitable venture.
no cause your profit is actually the morgage! margage is not an expense, its equity...dont forget that your building equity that is your actual profit!
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