You should check this out.
Financial planner say you shouldn’t spend more than 33% of your income on housing and less than 20% on transportation. This means an enterprising landlord could nab 50% of take home if they expanded their role to rent vehicles – especially electric vehicles.
I broke out the numbers in this BiggerPockets article.
Take a look and tell me if you think it’s doable.
Great idea, make sure the tenants are responsible and have a high credit score. I would wonder who pays the insurance? How to you enforce the tenants have insurance before every drive?
In MN, insurance is the law, yet there is 15%+ non compliance rate. With renters, I would suspect that number is much higher, they have less to lose.
Thanks for your comment. You’re absolutely correct about credit scores as a prime indicataor.