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I actually have a related question that I'm curious to hear takes on. I'm a leftist, and I own a 1-bed apartment where two good friends of mine rent the apartment right next door. Their landlord is planning to sell next year, and they don't have the ability to buy it. So depending on who does buy the place, my friends could be out of a home. My sister and I could combine finances to buy their unit (with a mortgage), and ensure that my friends could stay where they are. This would be a bit of a financial burden but doable, and we would need to charge rent to pay back the mortgage.
Would this be a net good or a net evil? I feel very conflicted about potentially being a landlord (especially for friends) but also don't want them to need to move.
If you take out a loan to purchase the apartment, then have your friends pay just enough rent to pay off the loan without attempting to profit yourself (perhaps a small amount extra to cover any recorded time spent in administration responsibilities, for a reasonable hourly rate). After the nortgage is paid off, you could then give them the deed. That would not be immoral at all, and would, IMHO, be a net good, as you'd be rejecting the profit incentive and giving your friends a very rare opportunity.
Only do this if you have the means to pay that mortgage yourself, imo.
You and your sister are taking all of the risk here. Your friends could lose their job or simply just move after a short time and then you are on the hook to find more tenets. I suppose you could just sell it if they move but you may lose money.
You would be a great friend to do that for them so that you could essentially lock them into a fixed rent for many years, but understand that it is not without risk.
Wouldn't you be benefiting from your friends? It's ok for a little bit, but if they live there permanently then they will pay off your mortgage and have nothing to show for it themselves. That sort of thing might build resentment long term. Though in the short term you both benefit.
But as I'm sure you're aware, any money issues may sour the relationship. Even just having a formal contract with exchange of money could change the dynamic drastically.
The ethical option would be to give the deed to the friends after the mortgage is paid off.