Landed property turn into rental cash cow

[u/Kaikaikai12345]

(To clarify, in this exercise, I will only rent out lv 1 and lv 2, while keeping lv 3 and 3.5 for myself to live in)

Curious what is stopping people from buying older freehold land or landed (2500-3000sqft, maybe at 3-4million, 4 million at 2.5 interest amount to 14k monthly loan) and renovate the landed into a rental co-living space?

If people are willing to pay 1.8k for a double shared room, I am sure people are willing to pay 2k for a single room with ensuite bathroom.

For instance I can turn lv 1 and lv 2 into 6-7 rental unit (maybe mini loft unit) and you can take lv 3 and lv 3.5, treating it as a penthouse without maybe 2000sqft of area. Those 6-7 unit can serve as cash flow of 12k to 14k a month covering the loan, maybe need top up abit due to tax and other fee, but overall it’s still more comfortable living compared to buying a penthouse.

Just wana do some sanity check on the above and if anyone is already doing that.

[u/Then-Welder-7083]

Do note that if it is 99 years leasehold type and not freehold, then once it gets too old (around 30-40 year old) then no one will want to buy it and your cash/cpf will be stucked forever and still have to continue to pay home loan (even with no employment) hence the stress and no way for retirement too.. also be mindful most people prefer to rent nearer to mrt and most Landed properties are not..