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Updated about 6 years ago,

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Erin Smith
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Need advice on potential rental home in Florida. Sinkhole concern

Erin Smith
Posted

Here is my story..... I sold a rental home in Chicago area last year.  (I am by no means a seasoned investor.)  I have an opportunity to buy out other half of a vacation home in Florida.  Here are the figures:  Original investment on my part was approx 33,000.  I would need to pay another 55,000 to buy it out.  The home would get approx 125,000 if sold.  It could rent for 1050 per month.  Not by the water, 2/2. 1115 SF.  My hesitation is it is in Hernando County, an area known for sinkholes.  If I buy it and rent it it is possible that a sinkhole could develop.  As you know that would mean a devaluing of the property.  So my quandery is do I rent it out or should I just take the money, sell it and look for a rental elsewhere?   What would YOU do and why?