Need advice on this personal home purchase please (future rental)

[Phillip Rosin]

This is a bit different but hoping you all will be generous with some insight. We were set to continue renting where we live and buying rentals but decided to consider getting a personal home. We found one with an assumable FHA loan. Rate is 2.75% with .085% PMI, which we can't remove unfortunately. Purchase price is $430k and current loan is $300k, so we'll have to pay the 130k difference. 26 payments have been made so far, so we skipped the 2 most expensive years of the loan. We are paying top dollar on the property, possibly a bit over. But with the interest rate, we'll obviously be paying much less than even a much cheaper home at today's rates. If we move in a few years, the house would cash flow positive around $100 per month with PM, $380 self managed. It's at the South end of Vero Beach, FL in a nice little waterfront neighborhood, but this one isn't waterfront. Lots of improvement and new development in the area, including revamping downtown Ft Pierce, which is about 15 minutes away and a new Buc-cee's gas station coming nearby. Several planned communities as well. We're currently renting about 15 minutes away in a lesser house/area for $2300. Total mortgage for this house is around $2150 (PITI+PMI). I've run numbers every which way and it doesn't seem like a terrible move, but I'm worried maybe I'm missing something. Does this sound like a decent deal for a primary/future rental? Am I possibly making a mistake?It would also benefit us personally as it's a nicer neighborhood and house, with a big yard, and we want to start a family. The house is directly across the street from waterfront homes worth twice as much and down the street from houses in the millions. Thank you so much for your opinions!

[Jake Andronico]

@Phillip Rosin

From the information provided, it sounds like a solid move IMO. 

The property itself is an asset, but so is the debt. The purchase itself doesn't necessarily sound like a home run, but that interest rate is. 

If you're able to own for cheaper than you're currently renting, that's a good spot to be IMO. 

Also, that loan rate is locked for 27+ years. You may never see that interest rate again in your life. 

If you're thinking of this purchase in more than a 10-15 year timeline, I think it sounds like a great option from the info provided. But, of course, with every transaction there are things that are below surface level.