• arandomthought@sh.itjust.works
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    14 days ago

    Step one: Have a shitton of money to buy property to rent out.
    Oh, you don’t have enough money? Hhm, have you tried not being poor?

    • finitebanjo@lemmy.world
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      14 days ago

      The meme specifies Mortgage which means they also don’t have any money. They obtained a loan that they will be paying back for 15 to 30 years, at which point the property will deteriorate to a much lower value if any at all. If they sell the properties then they will owe depreciation recapture which works similar to a capital gains tax, as if it were additional income on top of the actual capital gains tax on the sale of the property itself. Plus closing costs to realtors.