DBADiver asked: My current intest rate is 5.625% with a 30 year
mortgage, but my house is 2440 sq ft and I live there by myself, it’s way too big for me!
Would it be a good idea to sell my house and get a duplex in the city? There is a good market for renters there. I’m planning to spend $300k - $500k and put 20% down. That will get me just about any duplex in my city. However, interest rates are a lot higher now, so my monthly payments will be higher than with my current mortgage.
Typically, a $300k duplex will have units that rent for about $750 each per month, with tennants paying all utilities. A $400k duplex would be about $1000 per unit.
Also, I’m worried that a duplex will appreciate slower than a single family home, and that with a lower rate of appreciation it will not be a good investment.
Any advice on what I should do? If the duplex would increase my net worth by at least an extra $10k per year, I’d feel like it’s a good idea, but I’m not sure it can.
I’m more asking investment advice. I’m about 15 minutes outside the city in the suburbs, but I’d enjoy living in the city as it’s a pretty social area I’m looking at (lots of young professionals, things to do, etc).
I’m only 28 and don’t have any experience with invement propety, so even with the research I’ve done it’s hard to know if I’m making the right decision. I’ve tried to run the numbers the best I can. My plan would be that if I buy a duplex I would get a 30 year mortgage and keep it, eventually moving and getting another place, but continuing to rent it. I don’t want to do that if living in my current house (valued at $360k now) would be just as good of an investment, because I know a duplex would require more effort (finding renters, making repairs, etc).
Would anyone out there who has experience with invement propety make this move, assumming that the lifestyle would be acceptable?
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