American landlords derive more profit from renters in low-income neighborhoods

Post by mhuffman » Sat, Mar 23, 2019, 5:41 PM UTC

zaroth wrote: post #94

mhuffman wrote: post #85

Earlier quoted context omitted.

This exactly! Also upkeep. Replacing a cheap shingle roof vs a metal or Spanish tile roof are night and day in costs. Plumbing is cheaper in a cheap small house with simple layout vs. Sprawling multi-level house. Size of grounds (and expected level care) to maintain are different. It goes on and on, but the gist is that the total net on a cheap house (ie. houses in cheap areas) is going to be more for the same level…

TFA also makes another good point but somehow makes it sound evil; In low-cost cities, landlord profit rates rise steeply alongside neighborhood poverty. But in expensive cities, the reverse is true. In expensive cities, landlords make money through appreciation and gentrification (which is bad enough for the poor). In lower-cost, more economically hard-hit cities, they make it on the backs of the poor. If the home v…

Post by thegayngler » Sat, Mar 23, 2019, 5:43 PM UTC

spo81rty wrote: post #11

I think you also have to take in to account the higher risk of renting to lower income individuals. They are more likely not to pay. They are probably also more likely to trash the place.

Post by hejdnrndk » Sat, Mar 23, 2019, 5:45 PM UTC

krapp wrote: post #44

kjbfojbejib wrote: post #12

Can confirm, I work for a company that helps landlords finance the purchase and repair of rental properties. In certain very LCOL urban areas around NYC and Philadelphia, we have individuals with tens of millions of dollars of property spread out among ~$150k buildings. They inspect their portfolio with armed bodyguards, and they very often own other businesses in the same neighborhoods that throw off money in small…

>An an interesting aside, these individuals are almost all involved with close-knit religious groups to which they contribute great deals of capital. Before an edit, the above comment referred to "close-knit religious groups" surrounded by triple parentheses[0]. These are used by white supremacist and anti-Semitic posters to denote or refer to Jews. They are not, to my knowledge, an idiom commonly used in any other c…

Post by tgb » Sat, Mar 23, 2019, 5:49 PM UTC

zaroth wrote: post #82

It’s a well known fact that as property value rises the yield on rental income decreases. A $180k townhouse can rent for $1600/mo but a $1.8m McMansion isn’t going to rent for $16,000/mo. The economics of this has to do with marginal utility mainly and nothing to do with exploitation . There’s also the calculation of fixed rental costs which derive a larger portion of the monthly payment the lower the payment gets. I…

Post by krapp » Sat, Mar 23, 2019, 6:00 PM UTC

hejdnrndk wrote: post #105

krapp wrote: post #44

Earlier quoted context omitted.

>An an interesting aside, these individuals are almost all involved with close-knit religious groups to which they contribute great deals of capital. Before an edit, the above comment referred to "close-knit religious groups" surrounded by triple parentheses[0]. These are used by white supremacist and anti-Semitic posters to denote or refer to Jews. They are not, to my knowledge, an idiom commonly used in any other c…

I wrote that comment using a new account to avoid being outed at work. To be very clear: your accusation is false, there was never any special parentheses, and I invite an admin to confirm that if they can.