Question

When is buying a house and renting it out a profitable venture?

a. Renting is profitable only when one has enough money set aside to pay for the house in full.
b. When the rent money coming in is more than the monthly mortgage, taxes, and maintenance, rental real estate is profitable.
c. Renting a house out is profitable if one does not require a contract or cost of utilities.
d. Renting out a house is only profitable when one has more than three properties for rent.

Answer 1

b. When the rent money coming in is more than the monthly mortgage, taxes, and maintenance, rental real estate is profitable.

Step-by-step explanation:

Buying a house and renting it out is a profitable venture if the rent you receive allows you to cover all the costs the house might generate like taxes or homeowners association fees and you still have an amount left after all the expenses are deducted. According to this, the answer is: when the rent money coming in is more than the monthly mortgage, taxes, and maintenance, rental real estate is profitable.

Answer 2

B. When the rent money coming in is more than the monthly mortgage, taxes, and maintenance, rental real estate is profitable.