Advantages and disadvantages of buying houses to rent in the USA in 2022

Homeownership is the foundation of the US middle class since the start of the 20th century. Millions of families rely on the monthly income they receive from owning a home. And even though a mortgage payment is higher than rent payment, many homeowners who live on a low income have no choice but to buy a home.

The rising prices of the real estate market are driving millions of families out of their homes, and this is a big issue that we are facing in the USA.

The rental market in the US is huge, and this is the only option that many working-class people and families have to get housing, because the cost of buying a home is so high, especially if they don't qualify for a mortgage. A family in the Northeast has to save up at least $10,000 to get a mortgage to buy a home, but it might take them months to save up that much money.

Now imagine you have no income and you need to rent a place for the whole year. As soon as your rent payments come each month, you can’t pay the rent, and it might become impossible to find a place to live. And if that happens, you will most likely end up homeless.

Renting in the USA is the only option that many families have in the country, and there are always good reasons to go that way, especially if you don’t have the resources to buy a home, and you don’t qualify for a mortgage.

Nevertheless, renting isn't a walk in the park, and you have to be aware of all of the potential downsides of buying a house to rent, and avoid them at all costs. So that you don’t lose your house or your money in the process, we have gathered some of the most important advantages and disadvantages of buying houses to rent in the USA in 2022.

Loan is very easy to obtain

One of the advantages of buying a house to rent is that you don't have to pay a mortgage payment, because the rent payment covers all the house costs and the costs of the mortgage. When you buy a house to rent in the USA, you only need to pay rent.

Many people who need a roof over their heads have a hard time to find a mortgage to buy a home. A mortgage is a big purchase, and they don't have the money to pay for a mortgage upfront. The loans to buy a home cost a lot of money, so it is very difficult to afford one in the first place, and when you don't have enough money, it is a big risk to buy a home that you might lose in the future.

The cheapest price

Buying a house to rent is usually cheaper than renting one. In some states, the rent for a house to rent is often cheaper than the mortgage payment, and many families try to find a cheaper place to live.

It is not common to have a mortgage payment in the USA, especially if you live in a large city and you are in the middle of the working class. In the suburbs and small towns, you have to pay more for the rent.