Alright, so here’s the scoop: in the next five years, my plan is to snag a bigger house for our growing family. We’ve got our eyes set on that dream of having some rental properties in our investment lineup too. The only hiccup is socking away enough cash for the down payment on our future abode. Currently, our home is valued at a cool $350,000, and we owe about $87,834 on it. With a manageable interest rate of 2.5%, if we stick to the plan, we’re looking at owing around $47,000 by May 2030, and the mortgage will be history by February 2035. Our place is a sweet deal – four bedrooms, 1800 square feet, a two-car garage, and a spacious fenced backyard. Similar digs in the neighborhood are renting out for $2,000 to $2,200 a month.
Now, let’s talk numbers. Our property taxes currently run about $1,100 a year, but nearby rentals are shelling out around $4,000 annually in taxes. Our insurance tab hits about $900 a year, but I’m not sure what that’ll jump to for a rental property. From what I’ve gathered, I’ll need to factor in vacancy (maybe 5%?), maintenance costs (x%?), plus extras like pest control and lawn care. I’m planning on being the landlord, keeping it local within a 10-20 minute radius. According to those nifty online calculators, it seems like I could be pulling in about $600 a month for the first five years, until the mortgage is dust in the wind. Post-five years, assuming a 3% yearly rent bump and no more mortgage, I could be looking at over $1,700 monthly in my pocket.
The end game here is to stash cash for that future house down payment, but hey, life’s full of surprises. We might end up upgrading sooner than planned, but for now, this is the game plan. I’m all ears for any feedback or advice – hit me up with your thoughts! Thanks a ton!