Does an expensive house bring in more rental income than a cheaper house?

Does an expensive house bring in more rental income than a cheaper house?

The answer is NO.

For example, if your budget is $700,000 and you purchase a single house in Guilford, Baltimore, your expected rental income is around $4,000/month.

However, if you decide to purchase two $350,000 townhouses in Remington, Baltimore, your expected rental income becomes around $7,000/month, which is 75% higher with the same budget.

Why does this happen?

Just because the house price is double, it does not mean the rent will increase proportionally.

Simply put, expensive neighborhoods have more buyer demand than rental demand. Without a good reason, why would someone rent when they can afford to own?

On the other hand, houses in affordable areas have a wider pool of both buyers and tenants.

I have been helping investors who are aiming to maximize rental income, and I would be happy to talk with you.