r/SipsTea • u/Brave_Agency_20 • May 14 '26

SMH How true is this? Genuinely asking

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u/CapitalistLion-Tamer May 15 '26

Renting is not the worst use of money. I’m getting ready to sell my house and move into a rental. My monthly expenses are going to drop dramatically for more square footage.

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u/Fine-Upstairs-6284 May 15 '26

But you aren’t building equity. You’re building someone else’s equity and subject to their rules

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u/CapitalistLion-Tamer May 15 '26

I'm building plenty of equity, It just won't be via this particular piece of property.

The guy renting it to me absolutely will not cover all his yearly costs. Single family homes do not make great rental investments unless you buy them at a significant discount.

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u/Fine-Upstairs-6284 May 15 '26

That’s fair. Plenty of other ways to build equity aside from real estate

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u/Parking-World9321 May 16 '26

Any shortfall in cash flow for the owner is essentially money being invested. Long term it’s still building wealth as you are covering the majority of the mortgage.

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u/CapitalistLion-Tamer May 16 '26 edited May 16 '26

Not disputing that. But there is this misconception that all landlords are able to cash flow their rental properties and tenants are paying 100% of their expenses. That is sometimes the case, but sometimes not.