I‘m probably going to do it anyway but, is this a terrible deal?

[Ron Marion]

I’m probably going to buy the house across the street from me and then rent it to my daughter and her family. The plan is they’ll buy it from me in a year or two, once they’re credit worthy.

I thought it might help me get my feet wet in the rental world while helping her out.

If it were just a straight up investment I don’t know if it would be profitable.

So here it is:

3 bedroom, 2 baths

$84,000

20% down plus closing cost

My mortgage with taxes & insurance will be about $520

I am borrowing the money for the down payment from my 401k. That payment will be $320 for 4.5 years

This house would rent for $800 - $900

I’m thinking once the 401k loan was paid off the house would cash flow.

But the 50% rule says it never will.

Thoughts?

Thanks in advance