Investing in a 3500sqft single-family home for rental income?

[Prashant Chawla]

I have a home next door that is going on sale in a safe suburb of Columbus, Ohio. Prices in my neighborhood are roughly around 450,000 to 500,000 range, single-family, approx 3500-4000 sqft homes.

Pros:

1. Its next door, I know the owner for 6 years, very well kept home, the property is in front of my eyes if I rent someone. HOA doesn't have strict guidelines to not rent.

2. I can manage the property without a doubt because its literally like I am living there, proximity from my residence. It's across from my property.

3. Real-Estate is generally a safer investment compared to Stocks or any other "Virtual" asset with the market being so unstable. My current financial condition is decent to afford 2 mortgages. Interest rates are low.

4. If it doesn't rent, my parents are getting old if they do want to move next to me, if I have this house they could stay closer.

Cons:

1. What are the chances it can get rented? I have only seen 2-3 homes being rented in my neighborhood.

2. It's a large investment for potential rental as a single-family.

3. Real-Estate market prices could drop next year, a post-election year with COVID-19 still not gone. The overall market is unstable.

4. House is 7 years old instead of brand new. That means large maintenance items like Furnace have limited life if they weren't replaced yet.