Hi everyone,
This is my first post, so apologies if I should've tagged something different.
My husband and I live on the east side of the Salt Lake Valley, and we’ve been exploring ways to achieve financial independence and build wealth through real estate investment. While we've done extensive research, we understand that nothing compares to the real-life experience of owning property and being landlords.
Here's our situation: we currently live in a duplex and are considering buying it from our landlord. Our idea is to continue living in our unit and have our next-door neighbor (attached unit) pay us rent, which would help cover our new mortgage. Our long-term plan is to eventually move out, rent both units, and buy a house of our own. From there, we'd look into repeating the process with other multi-family or single-family units.
A bit about us: I work in corporate marketing, and my husband works in corporate accounting. We have no current plans to expand our family. We’ve looked at some of the figures, but we can’t find an easy way for this property to produce positive cash flow.
We’ve mentioned our interest to our landlord. He’s older and prefers to be the “bank,” a method he has used for several properties he previously rented out and sold. However, we haven't provided any hard numbers or a formal proposal yet. We’d appreciate your advice on the following points:
- -Drafting a Proposal: Is it worth drafting an official proposal with a commitment to a certain down payment to show our seriousness? Do you have any tips on how to convince our landlord to sell to us or that we’re serious about this?
- -Alternative Options: Should we move on and look for other properties to purchase instead of this duplex? This would be our first mortgage, and we're wondering if it's wise to pursue this specific opportunity or find another one.
- -Homeownership First: Would it be better to first purchase a home of our own, get some experience being homeowners, and then start the process of renting out properties? Essentially, should we take this step-by-step approach rather than jumping straight into being landlords?
We’re looking for any advice, personal experiences, or tips that could help us navigate these decisions. Thanks in advance for your insights!
