Are you pretty financially comfortable now? That would weigh a lot into my decision.
Figure out financially where you would be in two years, with or without moving into the apartment. Might help answer your questions
I have a good paying job, and my wife is working part time towards a masters degree. The goal would be to save enough for one or two rentals to kickstart my investment career, which would be a probability, provided nothing horrific happens to our home.
Unless I'm understanding you incorrectly. If you move out of the house, you have an opportunity to move into a rent/utility free apartment. Therefore, any rent collected would be net gain even if your mortgage is more than your rents.
In my opinion, what you are losing is the short-term comfort and routine that you are accustomed to in order to achieve a long-term goal.
Most investors, invest knowing there is a period that it will take before you see a return on your investment. You have to either be willing to make sacrifices or else make a decision to just stay in the "comfort" zone.
As an investor with a portfolio of 20+ properties it is worth it. Yes I could instead spend my investment money on a half-million dollar home and luxury cars but instead I choose to invest and take chances to set my family and I up in the future.
Craig, just wanted to thank you for giving me the kick in the rear that we needed. I didn’t think about the fact that someone would be paying 12 months of our mortgage for us, I was just focusing on the short term. I guess it’s easy for one to be emotionally fearful when the risk is a home you love vs. one you buy for investment.
Sell the property and use the capital to invest in wholesaling land or SFRs where there is little to no risk. We stay in neighborhoods with witch we are very familiar and mail offers by the ton.
Good luck. Sounds like you are off to a great start.
Adam - I agree with Craig on this one I think. It's a close call, but the decrease in your mortgage over 2 years should make it worth. Also, keep in mind that the tenant would pick up some of those other bills (water / sewer / trash / electric / heat). Ping me if you want us to give you a rent estimate for you.
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