Hey there, so my husband and I are mulling over the idea of buying this sweet two-unit building for $200,000. It’s been freshly remodeled and is in tip-top shape. The rent in our small town is around $1200, which should easily cover the mortgage, expenses, and maybe even leave us with some extra cash in our pockets.
But here’s the thing – our town is pretty tiny, only about 4000 people live here. So, I’m scratching my head trying to figure out how to gauge the demand for long-term rentals. I do know that we’d have no problem renting it out for at least 6 months a year because there’s a housing crunch for seasonal folks from May to October.
Now, financially speaking, we’re not doing too shabby. Both my partner and I bring in $70k each, we don’t have any debts except for the $140k mortgage on our current home, and we diligently contribute to our IRAs. Plus, we live within our means. We’ve got a nice cushion of $102k in cash, brokerage accounts, and savings, and that’s not even counting the equity in our home or our roths. The down payment for the new place would be $50k, plus another $5k for closing costs.
My husband’s job is pretty intense – it’s physically demanding, and he’s usually wiped out when he gets home. On the flip side, my job is more flexible, so I could swing by to check on the tenants if needed. But here’s the kicker – I already handle a lot of the mental load at home, and the thought of piling on more responsibilities is making me a bit jittery.
On paper, this whole deal looks like a winner, but we’re still relatively young at 31, and I can’t shake this feeling of unease. Are we missing something crucial here? And just how much time and effort should I expect to put into this property on a monthly or yearly basis?
Any advice or insights you can offer would be greatly appreciated. Thanks a bunch!