Renting an apartment with tenants for extra income.?

Question

I recently got the idea to mortgage an apartment with tenants already in it for extra income, is this a good idea?

Answer 1

Keep in mind that if/when those tenants move you will still have a mortgage payment and the apartment might sit empty for a few months before you get new tenants.  Also, the tenants might damage the apartment and you will have to pay to fix it.

Answer 2

Generally your mortgage will be higher than the rent you can collect from the tenants.  If the apartment rent was higher than the mortgage, then the tenants would have already bought the place, wouldn't you?

Don't forget details like insurance, taxes, mortgage interest, maintenance, and months where you have no tenants.

Answer 3

I doubt that woudl get you extra income per say...it would cover your mortgage and get you equity in it for later on when you sell.