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QlriPower17 Feb 2020 17:35Hello,
a brief overview of my situation: I rent an apartment that I really like. It only includes one garage, so I rented two additional garages from my neighbor. Parking on our street is a disaster (I have two classic cars that can’t be left outside anyway).
Now, the owner of the house with the garages has passed away, and the heirs are considering selling it.
The living spaces in that house cannot compete with my apartment since it would require significant renovation and still wouldn’t match. However, it is designed as three medium-sized apartments that could be rented out.
My idea is to buy the house and rent out the apartments.
Is it a bad idea to buy a house without living in it myself and continue renting my current place?
I expect the rental income to roughly cover the mortgage payments. Maintenance costs would be extra—probably a few hundred dollars per month—but I could set that aside without any problem, plus the work involved. After 25 years, the mortgage would be paid off. If all three tenants left at once, I would be in a tight spot but could manage for a few months. However, that seems unlikely. In a worst-case scenario, I could move into one of the apartments and give up my rental apartment.
a brief overview of my situation: I rent an apartment that I really like. It only includes one garage, so I rented two additional garages from my neighbor. Parking on our street is a disaster (I have two classic cars that can’t be left outside anyway).
Now, the owner of the house with the garages has passed away, and the heirs are considering selling it.
The living spaces in that house cannot compete with my apartment since it would require significant renovation and still wouldn’t match. However, it is designed as three medium-sized apartments that could be rented out.
My idea is to buy the house and rent out the apartments.
Is it a bad idea to buy a house without living in it myself and continue renting my current place?
I expect the rental income to roughly cover the mortgage payments. Maintenance costs would be extra—probably a few hundred dollars per month—but I could set that aside without any problem, plus the work involved. After 25 years, the mortgage would be paid off. If all three tenants left at once, I would be in a tight spot but could manage for a few months. However, that seems unlikely. In a worst-case scenario, I could move into one of the apartments and give up my rental apartment.
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NatureSys17 Feb 2020 19:31The disadvantage is that you have to pay tax on rental income, while your rental expenses are not tax-deductible.
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