To Buy or Not to Buy

[Arnie C.]

We have been renting a house in a small town for the past three years. Our landlord has told us he is planning to sell the house so we have the first opportunity to buy it from him. While we don't know for sure that we will be staying in this town for more than a few more months (if that), I have been thinking about the idea of buying it. The reason is that this town has very few house rentals on the market so I believe that finding a renter would not be an issue. Also, since we have been here for a while, we know the area, the people, and the house itself. I was thinking that I could keep it as a rental property after we leave and I should be able to raise the rent 10-20% from where it is at now. I also have an idea that maybe we could put some work into the house, split it into two separate units (upstairs and downstairs) and be able to increase the total amount of rent by 40-50% of its current amount. However, this idea would have to first be cleared by the town. Also, I would have to look at the cost factor in renovating to create separate units. I am no contractor but at first glance it could be a very expensive project that wouldn't be worth doing.

Any questions or thoughts are welcome.