I'm 31, single, a full-time phd student, and a part-time landlord. I really do not like landlording, but I can't afford my house otherwise. I live in the basement apartment and rent out the main floor apartment.
I bought a 1946 brick war-time house (2 bedroom main floor, with 2 bedroom basement apartment) 2+ years ago in the West end of Toronto. I paid 410k with 20% down and a mortgage (2.97%). I now owe 304k on it. Based on comps in the neighborhood, it would sell today for somewhere between 600-650k. The Toronto market is ridiculous right now; my previous next door neighbor sold her house that is identical to mine but with an unfinished basement a few months ago for 625k. She had 10 bids on it.
The rental income (1600/mnth) pays the monthly mortgage fees, inclusive of property taxes. I pay all the additional utility/insurance bills and maintenance which are around $500 per month. That does not include when bigger projects come up - I got all new eavestroughs last winter, and I think I should start the process of getting some new windows as well.
After a couple sets of not-so-great tenants, I have seriously considered whether I can continue renting for much longer. Current tenants are pretty good overall, but have essentially taken over my property and I often have fantasies of selling the place just so I don't have to deal with them anymore. I think I just don't have the right personality for landlording!
I could buy a 1 or 2 bedroom condo for 300-400k in a better location, save myself the hassle, AND have a really low mortgage at that point. I have approximately 2-3 years left in my phd, which is why I am not earning very much now.
But at the same time, getting into the housing market in Toronto is very difficult for people in my circumstance. I feel like it would be silly to downsize, when so many people in my demographic can't get a detached house either because they don't have the downpayment or they lose to competitive bidding wars.
What are your thoughts?