Hey all,
Thank you for taking the time to read this and help me out. My wife and I purchased our first property two years ago in Salt Lake City for a good rate at 4.29%. We spent the last year remodeling the basement ourselves and currently have our first medium term renter (We fully furnished the unit to squeeze more rent out). It's rented at $1950 a month, and our mortgage is $2,650. With this we will be able to save quite a bit more for future purchases.
Now If we rent our upstairs as a long term unit (for less vacancy), we estimate to be able to cash flow around $800-1000 depending on vacancy. This is very intriguing to use for obvious reasons.
However, in the past two years with rates going up and the housing prices climbing in our area, even if we do the same process with buying a home, fixing up the basement, renting, etc we'd be a lot closer to just breaking even come a few years time, if that. Unless rates decrease a good amount that is. We have a decent amount of savings, at least enough for a down payment and closing costs on our next home, but the buying power just seems so limited in our area.
I guess what I'm getting at is it seems like our options are either bite the bullet in our next primary residence where we are currently located, understanding the future opportunity to rent for cash flow looks pretty bleak, or look in other states where we would have more buying power and try to find a duplex or sfh that will cash flow off the bat. I know the rates right now are making this harder, but I have heard some success stories in Ohio and even Indiana. I'd be up for the challenge of a little fixing up, even furnishing and making it a medium term rental. I do understand there is risk with finding a good network out of state of contractors and property managers.
Anyways, there's my background and questions, any help or experience in this area is greatly appreciated so I don't make a decision I might regret! :)
