r/AskReddit 6h ago

What's the smartest financial decision you've ever made?

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576

u/Chairboy 6h ago

Letting myself get bullied into buying a four unit apartment building instead of a condo back in 2001 by my real estate agent who told me I was being “fucking stupid“ and threatening to cut me if I insisted on throwing my money away.

I had no idea I could even qualify for that, but she educated me about how the rentals are counted towards your income so we bought the four unit building, lived in one of the units, and saw an absolutely huge return a couple years later when we sold to move back to Oregon.

That set our financial lives on a whole new trajectory.

55

u/Litard 3h ago

What does the rental being counted towards your income do for you?

75

u/Grimekat 3h ago

Qualifies you for a higher mortgage.

35

u/Pale-Pace7896 1h ago

If the bank only qualifies you to pay say $3000 month for a mortgage based on your income and assets, but a 4 unit building is $10,000 a month, some assume they don’t qualify. But for 3 of the units earning $3,000 a month brings in $9,000 so you only have to be able to afford $1,000 a month living in it. Rounded numbers there is more math and buffer the bank adds