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Updated over 2 years ago,
Purchasing Condo/TH - Houston Area - Advice!!!
Hey everyone – Looking for some specific advice on the following scenario:
Thinking about purchasing a condo/townhouse in the Houston area for my college age kids. Cost of property will be $150-200K. We plan on using one of the rooms for personal use and rent out the other 2 rooms. Total rent revenue will most likely not cover the full 1% rule as we’ll use one room (acting as property manager. Assume our AGI is well above 150K, I’ve got the following questions. Note: at the date of this posting (5/22) interest rates have doubled and potential downward pressure on real estate.
Questions:
- Intent is to buy as a real estate investment but can also potentially claim as a second residence. Advantages/disadvantages?
- Advantages of buying cash vs mortgage: Note the AGI statement above
- Simulated revenues will be $1200-1300/month and most of these homes have $3-400 maintenance fees. Any advantages of with buying cash vs. mortgage as above. As well as are there any other advantages.
Any feedback would be appreciated.