Purchase a current rental property

[Lynn Pahl]

We have been looking in our local downtown historic district for a home; however, the market is tight with very little inventory in our budget. We are an older couple (empty nesters) and looking to downsize to a single story home. Recently, our friend and realtor called about a property that is listed for sale in our target area. The house is currently rented until May 2018. We are upgrading our present home and would love to have that time to finish our updates. The downside is that with the purchase price, we would have a monthly loss of $330.00 per month. Is this a reasonable opportunity for our consideration? Appreciation in the target area is 4-6% annually. Thank you for your response in advance.