6
QuizMultiple Choice

Real Estate Investments

Question 6 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

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

Answer
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.

Explanation

A rental property is profitable when its income is greater than its costs. Choice b compares the rent received with the monthly mortgage, taxes, and maintenance, so it gives the relevant condition. Paying for the house in full or owning more than three properties is not necessary for a rental to be profitable.

AI-written and checked against the verified answer.

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