Why I Rent While Owning Millions in Real Estate

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Challenging conventional wisdom can be difficult, but sometimes the numbers tell a story that can't be ignored. As a successful real estate investor managing a multi-million-dollar portfolio, I've made the counterintuitive choice to rent my personal residence rather than own it—and today, I'm sharing the eye-opening math behind this decision.
After comparing my comfortable $1,900/month rental apartment to a similar condo for sale in Milwaukee, I discovered a staggering financial gap. The comparable condo, priced at $475,000, would cost approximately $4,800 monthly when factoring in today's 7.25% interest rates, $908 in monthly HOA fees, substantial property taxes, and insurance. That's a $3,000 monthly premium just for the privilege of saying "I own my home"—with no meaningful difference in living experience.
This financial reality raises important questions about the true cost of homeownership in today's market. That extra $3,000 monthly represents significant opportunity cost—money that could fund memorable experiences, quality-of-life improvements, investments, or simply provide financial breathing room. When I run the numbers, even accounting for potential appreciation, the equation often doesn't favor buying right now, particularly for primary residences in certain markets.
The disconnect between housing costs and financial reality has created what I see as a market arbitrage opportunity for renters. If someone like me—with substantial real estate experience and resources—finds current ownership costs prohibitive, how are individuals just starting their careers supposed to enter the housing market sustainably? Sometimes the financially savvy choice is patience—continuing to rent while building savings and waiting for market conditions to shift.
Whether you're considering your first home purchase or reassessing your housing situation, I encourage you to run your own numbers carefully. Look beyond the emotional appeal of homeownership and examine what makes the most financial sense for your specific circumstances. Share your thoughts on the rent vs. buy equation in your market—I'd love to hear your perspective on this crucial financial decision.

פרקים

1. Introduction: Renting Despite Owning Real Estate (00:00:00)

2. Comparing Costs: Condo vs. Apartment (00:01:18)

3. The $3,000 Monthly Difference Revealed (00:02:50)

4. Renting as Financial Arbitrage Strategy (00:04:19)

5. Market Perspective and Closing Thoughts (00:06:20)