Comparing just those two things, you would save way more money in the long run by avoiding the annual mortgage interest.

The sale of our home will provide us with approximately $150,000 to allocate toward investments.At this stage, we feel most comfortable focusing on long-term rentals.

It’s worth mentioning that we have been working with same investor for four years and we are fully delegated with them.  

I have proof of all of it and we are ready to act swiftly.

. 😂 But we are learning a lot!

I'm from Long Island, NY starting my journey in Real Estate.   

David, this deal could work, but I’d want to dig into a few things first. 80% occupancy with long-term tenants is solid, but what happens if a major tenant leaves?

How long are you going to own it and when will you try to sell it?

I'd recommend looking at costs. your build cost is going to be well over other homes because of the fixed costs like slab, Hvac, roof, etc. check the market drivers and weight the benefits of short term versus long term. long term is no furniture and help pays mortgage but at this size it doesn't really cover everything. we didn't find a lot of economies of scale in single family detached. can you build more than one unit?

As we all know, the standard way BP says to calculate cash flow actually leads investors away form long-term opportunity and leaves a lot of investors on the sidelines because they don't understand IRR and the multi layered dynamics of investing long-term.