Decision to buy SFH with intent to rent in two/three years....

[Ron Gosling]

My wife and I are stumped on a decision to purchase a SFH with a VA loan with intent to move-out and rent in two or three years. The home was built in the mid-60s and located about 20 miles north of downtown Philadelphia. Totally rehabbed by owners less than five years ago, nice three bedroom, two and a half bath, very good shape and a reasonable sales price of $155K. The hang-ups: the home has been on the market for over 13 months (if good deal, why not bought?) and there is a not-for-profit, 260 unit low income public housing/apartment complex a few blocks down the street. Home was recently assessed for $170K and comps in the area above the going price. Crime stats and reports are above average with burglary and smash-and-grabs at the top of the list. Tenant satisfaction within the complex is low. Is the home worth buying with a mortgage of $1,200 monthly and potential rental price of $1,300 monthly? And, what does the future hold for home appreciation in 10 to 15 years? Thanks in advance for your comments and wisdom.....

[Alexander Felice]

Good deals don't last, lousy deals only last a bit longer.

Almost all the good deals in my area are gone in 72 hours or less. 

That said, ask the neighbors why the house hasn't sold. Are any other people looking to dump their homes? If everyone else is content with the area than maybe it's a different reason the house isn't selling (at that price). You need a bit more information I think as to WHY it's lasted so long, then you can make the correct decision.