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If you want to live there in Nov sure. There’s a lot of factors that can make this a good choice. You may be breaking even in terms of cash flow but your tenant is also paying some of your principle down in those 8 months
Potential appreciation and tax savings.
I’m not an expert. I’m a degenerate that buys calls on any stock ticker with a 🚀 next to the name.
These units typically sell for $200 but I’d be buying from her for about 185-190. Is it worth the hassle to purchase this property and be a landlord for what seems like a break even price point for the next 8 months?
Why not just purchase in November when the tenant leaves?
That’s why you have a written contract. Just put the settlement date as later. You give ernest money and have time to shop for a mortgage.
I did that with neighbors of mine for my second home. They sold to me before it went on the market.
I should also mention you should run your amortization schedule against your mortgage. Most of your first few years are primarily interest only so you won’t gain that much principal for renting.
Go for it!
Pros: you already start with equity, it seems; you can claim interest, property taxes, depreciation and any other related expenses on your tax return because this will be an investment property until Nov
Cons: you will get a higher mortgage rate and have to put down 25%
Find a mortgage banker that will also help you refinancing once the tenant moves out. You could structure the deal in a way that you only pay closing costs once (by accepting an ever higher rate for the 8 months - it’s the same idea as buying a lower rate)
Good luck :)