Hi all,
I'm 27, single and stable at my current job. Currently renting a room in a modest beach house. I recently inherited about 110k in cash and I am toying with the idea of buying a property that has two smaller (sub 1k sqft each) houses on it. Currently they are a little dumpy but with some money and effort I think that they can both be pretty solid rentals that are two blocks from the one of the more desirable beaches in my area (they are 2 houses away from the flood line, I will not need flood insurance).
It's kind of a weird situation, in that zoning only allows for the property to be sold with both houses and they cannot be split up. Listing price is 190k, both houses need carpets and tile ripped up, the hardwood floors redone and fresh paint at the absolute minimum. One may have a bad roof, one is more recent. I would likely try to knock out as many of the smaller potential problematic items that could cause headaches down the road prior to having tenants in the houses as well.
I feel as though this could be a great opportunity to either live in one of the houses and rent the other house out, with their rent covering my mortgage for a few years, then down the road have both units rented out in hopes of a source of passive income. I am comfortable putting enough money down (20%+) that the rent received from one unit would cover the entire mortgage, property taxes and insurance so I'd only be covering it out of pocket if lived in one of the units and did not have tenants in the other unit, or if I did not live in either unit and had no tenants in either unit, which I don't think is too much of a stretch with my current income (one unit occupied would cover both units).
What are you guys thoughts on this situation with my current income? Anything that I am vastly overlooking?
Income/assets
Salary - $47,500 (~$2,600 monthly take home after contributing 5% to company 401k which gets me a 4% match)
Local Checking/Savings - $4,000
Online Ally Savings - $119,000 (predominately inherited)
50k in the form of an inherited IRA and 11k in a Roth IRA of my own.
Debts/Budget
Rent/utilities - $600
Car insurance - $150
Motorcycle insurance - $25
Gym membership - $10
Pet insurance - $35
Let me know if any additional info is needed. Any insight is hugely appreciated. Thank you for your time.
Submitted June 21, 2018 at 09:08AM by internetfacade https://ift.tt/2ywXoEu
