JPMorgan to spend $1B on rental homes in the US to become a megalandlord

Re:JPMorgan to spend $1B on rental homes in the US to become... by scifibestfi on Saturday December 31, 2022 @11:07AM (#34197661)

> Being a landlord has become a more attractive investment

This is changing as we speak due to the interest rate. These investments are not attractive if you can get a 4% or higher return without having to deal with tenants and maintenance.

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Re:JPMorgan to spend $1B on rental homes in the US to become... by tppiotrowski on Saturday December 31, 2022 @11:24AM (#34197864)

Is 4% an average rate of return for landlords? 4% of what: the capital you used to buy the house?

So if I buy a house for $100,000, I get $4000 in rent per year? Or I get $4000 in my pocket after I use the rent money to pay the mortgage and property tax?

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Re:JPMorgan to spend $1B on rental homes in the US to become... by toomuchtodo on Saturday December 31, 2022 @11:29AM (#34197936)

Typical RE return targets are 10-20%. Anything less than that and you might as well be in public securities.

There are different ways to calculate returns: IRR, cash on cash, but it’s immaterial for this discussion. TLDR you want returns higher than you can get elsewhere easier.

[ Parent | on HN ]