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Updated over 5 years ago,
I‘m probably going to do it anyway but, is this a terrible deal?
I’m probably going to buy the house across the street from me and then rent it to my daughter and her family. The plan is they’ll buy it from me in a year or two, once they’re credit worthy.
I thought it might help me get my feet wet in the rental world while helping her out.
If it were just a straight up investment I don’t know if it would be profitable.
So here it is:
3 bedroom, 2 baths
$84,000
20% down plus closing cost
My mortgage with taxes & insurance will be about $520
I am borrowing the money for the down payment from my 401k. That payment will be $320 for 4.5 years
This house would rent for $800 - $900
I’m thinking once the 401k loan was paid off the house would cash flow.
But the 50% rule says it never will.
Thoughts?
Thanks in advance