I can say that having only one rental… is not enough. We have started the process to sell our rental as we were only making < $1500/year on it. It just wasn’t worth it. But if we had had around 3-ish rentals then maybe it would’ve been better as they could better support one another. We charged a lot for rent, but, after taxes, insurance, near constant repairs, and now the threat of not being able to secure insurance (due to companies leaving the higher risk area that we were in,) it just isn’t worth the hassle for a single home rental unless it is next door to your own house, and you are doing the repairs.
My take is that 1-2 houses still isn’t enough. Especially if you’re trying to replace active income generation (jobs and such). Nobody needs 40 units (that would be it’s own property mgmt. job), but one or two is most certainly not enough. I could probably get by with the income of ~10 if a property mgmt company was supporting me.
The problem isn’t that people are trying to make money off of rentals, it’s that people are trying to make too much money off rentals by raising monthly rates to rent-trap level, and low-to-non-existent repair-rates.
I usually handle this by reminding people-at-large that landlords are not the problem. “Rent-seeking” landlords are the problem. I’d imagine that given the ARR-mindset of some of the larger players also contributes to the negative stereotype. Where the goal is not “Providing a Service”, but instead it is “Building Capital”, that’s where I start to lose interest.
I too, feel that if your annual income is greater than 8 zeros, then you should get a plaque from the IRS saying “Congratulations, you’ve beaten capitalism this year, now go outside and touch grass.” and everything above that is used to actually better society. This is what progressive taxes that were reduced 40 years ago were intended to do (Source: Effects of Reaganomics).