I've been researching how to make money through buying and then renting out real estate but the figures aren't adding up to me. For example, lets say you start out buying a house for $130,000 and the monthly mortgage is $600. You would obviously have to charge more than the 600 to make a profit, and for a property of that value, you wouldn't really be able to charge more than lets say $1000. So that's a $400 profit for you. Okay. That's not a lot of money at all. So you would have to buy another property and do it again, so that's another what, $500. So you'd own 2 properties and only earn around $1100 from them per month.
You would basically have to buy like 3 properties just to earn above $2,000.
What am I missing here? The only way to earn a major profit is if you bought a property outright and paid it off completely, then keep every dollar of rent. But even then you'd probably still have to buy 2 properties. I'm confused because this seems impossible for any random person to get into the real estate game if you need to take out loans for multiple properties. I mean who has that kind of capital unless you already come from money? Can someone explain how this works or if I'm missing something? I mean yeah you could have a part time job and just use the real estate profit as extra income but I was trying to see how this could be a full time job not just extra cash.
Read more: How do you actually profit from renting out real estate?
