Yeah they’re still technically $700/mo in the negative.
$1400 mortgage + $1600 apartment is $3000 in expenses. $2300 income from the rent gives them an outlay of $700 they still have to come up with for the apartment.
So for strictly housing costs, they pay $700/mo. That likely doesn’t include all of the other things they need: food, transportation, medical, utilities, etc.
They get 2,300 and spend 1600 by living in the apartment and renting.
$700/month and equity.
But obviously it’s more of an issue when it scales up
They still pay the mortgage of 1400 a month as well.
Yeah they’re still technically $700/mo in the negative.
$1400 mortgage + $1600 apartment is $3000 in expenses. $2300 income from the rent gives them an outlay of $700 they still have to come up with for the apartment.
So for strictly housing costs, they pay $700/mo. That likely doesn’t include all of the other things they need: food, transportation, medical, utilities, etc.