Trying to decide if a house is a good or bad investment
I have a pending sale on a 3 bedroom 1 bath craftsman single family home built in 1912, it has a non-permitted but livable basement with it's own full bath, sink & separate outside entrance. The home is in a desirable neighborhood but faces a busy street & it's been sitting on the market for 5 months w/ only 1 buyer who backed out. If the house was on a side street it would of sold quickly & for $100K+. The sellers marked it down almost $150K.
The house looks solid & has curb appeal plus I can rent out the 3 upstairs rooms & my roommates have their own bathroom to use, and I have mine in the basement. All 3 rooms rented will pay for my mortgage/taxes/insc.
I made an offer & they accepted, now we're going to do an inspection. However I'm starting to think it wasn't a wise investment despite the location & 4 rooms due to resale value in the future, loss of appreciation due to the busy street, higher than typical taxes & future repairs on a 1912 home.
Should I back out of the deal as it's too risky?