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Updated about 9 years ago,
Why Shouldn't I Do This?
We have lived in a rental house for the past two years and anticipate living here for at least one more year until my wife finds a job and we build up some additional cash. The rental we live in is a 3 br / 2 ba that rents for $1,300 a month. The house meets our needs currently but we'd like to move into a 4 br house in the next two years.
Help me figure out why I shouldn't do the following:
*Buy the house for around $140,000 (market value)
*Since we'll live here for at least a year utilize an FHA loan for 15 years (we have great credit)
*After we've lived here for at least a year rent the house out for a minimum of $1,300 once we move into a larger house. The monthly payment on the house would be $993. This house is in a nice area and should be rented quickly.
This would be our first rental property and I can't figure out why we shouldn't do this....of course we have to see if the owner wants to sell it first. Appreciate your opinions.