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The house isn't really livable. It’s only about 600 square feet spread over two floors... maybe 250 to 300 square feet per level. It's tiny, basically just a tower. Not much of a home, I guess...
The price is low because of that, plus the owner is this elderly lady from the UK who just wants to offload the place since she isn't moving back to America🙂 ever again.
I can't get a mortgage for such a short term because my reported income—which looks pretty low on paper—isn't enough to qualify...
I suppose I could accept if everything I pay over the next two years goes straight toward interest, provided I can clear it all in three...
And based on my steady job over the last six years, I think that house could realistically bring in $10,000...
The only thing left is convincing my wife...😁
Anyway, I've wanted to start this business for a while now, but I just couldn't find the nerve... I think maybe the time has finally come...
Oh, and thanks for the help, and for the answers...
I already posted this thread under the Housing section, but since it relates to this topic too, I am posting it here as well...
Hello,
I have a situation where I need some help.
I am 28. I have a wife and a child. We are currently living in a larger tourist city in the US. Due to a series of circumstances, we are living in a rental unit that was only supposed to be for three months, just until my wife gets used to the baby and settles in. I only moved here because my landlord gave me notice a few days before the baby was born...
Anyway, we started looking for a home to buy. In the market for apartments and houses, but nothing costs less than $400 per square foot, even outside the city limits... and both our parents live right in the city center...
Our maximum budget is $250,000 because anything more would destroy us with a mortgage...
One day, we found a house right in the city center (only a few hundred yards from both my parents and my wife's parents).
The house is about 650 square feet and was listed at $175,000, but after negotiating, they dropped it to $155,000. It would require some money for renovations...
After talking it over with my wife, we agreed the house might not be ideal for living in. However, since I already have a steady job working with my parents—which involves short-term vacation rentals—we can fill at least ten other houses and rentals in the neighborhood during the summer season...
My thinking would be to buy the house with a $155,000 loan (monthly payment of $950) over 30 years, but the repayment would work like this:
1. My parents have promised they can give us $30,000 from every season.
2. From renting out this specific house, we could save $30,000 by the end of the season.
3. From my own job, I could save $15,000.
That is $75,000 by the end of September. So, I would have paid off half the loan in less than a year.
In the winter, the apartments can be rented to students for about $600 a month each. Two units at 325 square feet each... so $1,200 monthly.
Since I have to move out of the rental unit anyway, I would take on roommates. A two-bedroom apartment goes for maybe $900...
The situation by the end of September (when I planned to move from the rental) would look like this:
- The mortgage payment would be cut in half, down to $475/month.
- The rent for the place I live in is about $900...
- The difference is roughly $150....
The mortgage and the roommates would be paid for entirely by the house itself. My family and I would live comfortably off my salary, which wouldn't be burdened by the debt...
Most importantly, THE LOAN WOULD BE PAID OFF WITHIN 3 YEARS AT THE LATEST.
The problem is my wife. She says we shouldn't buy something when we don't technically have a permanent roof over our heads yet. She would rather wait until things stabilize (in my opinion, there is no sense waiting a year "for things to stabilize" only to pay $300,000 for 500 square feet)...
Anyway, I am looking for your help just to try and see things more objectively. I have gotten really excited about this house, so I don't know if I am being objective enough or if I am being completely subjective...
WHAT DO YOU ALL THINK ABOUT ALL THIS...?