Station Park | 18, 28, 36, 40, 50 fl | U/C

[tomh009]

But it is! It 100% is. Someone buys a condo for $200k. They mortgage it and their payment on the mortgage + condo fees is whatever, $1200/mo. They charge $1500/mo to someone willing to rent it from them, and they make $300/mo on top of now having a $200k condo that is theirs to flip (probably for significantly more) at the end of the mortgage.

How is that not "paying someone else's mortgage"?

Assuming your numbers are right, you will still have property taxes, let's assume 1.2% so that's $2400/year or $200/month.  You are now almost cash flow neutral.  That's before any maintenance or repairs -- or paying the property management company, or accounting for a lack of tenant.  Meanwhile, you could have invested your down payment and you would be making money on that as well.

Of course, in some buildings the ratio will be more attractive than in others, and there it could make financial sense to buy a unit and rent it out.