Hi all, thanks in advance for any insight.
My partner (could get married at any time) and I live in a beautiful 5-bedroom, 3-bathroom 300-year old home in NJ. We live with 3 other close friends and pay less than $600 each per month in rent. We had planned on renting another year and saving up, but the landlords have just told us they plan to sell. However, they would be eager to sell directly to us given our excellent relationship and ease of sale. They don't have a price yet, but we estimate about $500k given the area and its previous sale price.
My partner and I have master's degrees and work for state government, pre-tax gross around $127k. We plan to increase both incomes ASAP regardless. Currently we could probably gather just over $100k to make 20% down. On that alone, a mortgage would still be extremely tight - but we would continue renting to close friends and potentially family (aging parents). Calculators suggest payments between $3500-4000. We would raise rent to at least $800x3 to make up much of the difference.
We adore the house, it's incredibly special, but also a 300 year old can of worms on nearly a full acre - largest lot in the area by half. The area is a historic district in an otherwise up-and-coming, still affordable town - no kids, no plans to. We would be first-time homebuyers and first time landlords, and don't yet know why the (independently wealthy) current landlords intend to sell. However it's also an incredible opportunity, once in a lifetime, such that even other housemates' families are interested independently. I know what I would WANT to do, but does it make sense from a risk perspective? Lots to consider in not all that much time, so any essential things early are appreciated.
Submitted June 04, 2023 at 10:32PM by AHole95 https://ift.tt/fBYs1rt
